Reliance Industries Ltd (RELIANCE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

I O C L

C P C L

ONGC

B P C L

HPCL

MRPL

Reliance Industr

Oil India

Gulf Oil Lubric.

Veedol Corporat

Castrol India

Why is Reliance Industries Ltd ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.04 times

Healthy long term growth as Net Sales has grown by an annual rate of 15.36% and Operating profit at 16.84%

With ROCE of 11.8, it has a Fair valuation with a 2.2 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 16.33%, its profits have risen by 22.4% ; the PEG ratio of the company is 1.1

High Institutional Holdings at 39.08%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Market Beating Performance

The stock has generated a return of 16.33% in the last 1 year, much higher than market (BSE500) returns of 2.07%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Reliance Industr should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Reliance Industr for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Reliance Industr

16.38%

0.83

19.67%

Sensex

4.8%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.36%

EBIT Growth (5y)

16.84%

EBIT to Interest (avg)

4.84

Debt to EBITDA (avg)

2.42

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

0.72

Tax Ratio

21.73%

Dividend Payout Ratio

9.72%

Pledged Shares

Institutional Holding

39.08%

ROCE (avg)

10.22%

ROE (avg)

8.44%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.37

EV to EBIT

18.38

EV to EBITDA

12.66

EV to Capital Employed

2.17

EV to Sales

2.23

PEG Ratio

1.12

Dividend Yield

0.36%

ROCE (Latest)

11.82%

ROE (Latest)

9.47%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

PAT(Latest six months)

At Rs 45,159.00 cr has Grown at 42.45%

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 1,115,000.00 cr

PBDIT(Q)

Highest at Rs 45,885.00 cr.

PBT LESS OI(Q)

Highest at Rs 24,642.00 cr.

-7What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.69 times

PAT(Q)

At Rs 18,165.00 cr has Fallen at -10.9% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Highest at 1.42 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.48 times

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Here's what is working for Reliance Industr

Operating Profit (PBDIT) - Quarterly

Highest at Rs 45,885.00 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 24,642.00 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 1,115,000.00 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Reliance Industr

Profit After Tax (PAT) - Quarterly

At Rs 18,165.00 cr has Fallen at -10.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 20,376.00 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Inventory Turnover Ratio- Half Yearly

Lowest at 0.69 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debt-Equity Ratio - Half Yearly

Highest at 1.42 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Lowest at 2.48 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio