Reliance Industries Upgraded to Higher Quality Grade Amid Strong Financial Performance

Reliance Industries has recently undergone an evaluation revision, reflecting its strong performance metrics within the oil industry. The company has demonstrated notable sales growth over the past five years, with a rate of 13.11%. Additionally, its EBIT growth during the same period stands at 14.02%, indicating robust operational efficiency.
Financial stability is further highlighted by the company's average EBIT to interest ratio of 4.69, alongside a manageable debt to EBITDA ratio of 2.52. Reliance's net debt to equity ratio is also favorable at 0.16, showcasing a solid capital structure. The company's tax ratio is recorded at 21.60%, and it maintains a low dividend payout ratio of 9.72%, suggesting a focus on reinvestment.

In comparison to its peers, Reliance Industries holds a competitive position, with other major players in the oil sector also exhibiting strong performance metrics. However, Reliance's return on capital employed (ROCE) averages at 9.80%, while its return on equity (ROE) is at 7.83%. These figures position Reliance favorably among its industry counterparts, underscoring its operational effectiveness and financial health.