Stock Snapshot
Price Performance
Recommendation Rationale
Favorable growth outlook supported by diversification and strategic pivots in O2C and new energy.
Basis of our Recommendation
Reliance Industries is navigating global economic volatility with a diversified portfolio, focusing on growth in digital, retail, and new energy sectors. The company is undergoing a significant overhaul of its oil-to-chemicals business to enhance margins and reduce exposure to energy market fluctuations. While facing challenges in traditional energy segments, Reliance's strong performance in FMCG and telecom is expected to support overall growth.
Why We Like This Stock
- Strong growth in FMCG sector with revenue doubling and expansion plans
- Strategic overhaul of O2C business to create high-value products and enhance margins
- Positive outlook on digital and retail sectors mitigating energy segment challenges
Things To Watch Out For
- O2C segment facing geopolitical disruptions and volatile energy prices
- Margin pressures impacting overall performance and EPS estimates
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 899,041 | 962,820 | 1,057,219 | 1,212,096 | 1,311,386 |
| Profit Before Tax (Cr.) | 102,684 | 104,614 | 123,162 | 132,055 | 151,532 |
| PBT Margin | 11.4% | 10.9% | 11.6% | 10.9% | 11.6% |
| Net Profit (Cr.) | 89,889 | 92,712 | 95,754 | 86,890 | 99,705 |
| EPS | 59.5 | 59.9 | 59.7 | 64.2 | 73.7 |
Company Overview
Show Company Profile
Reliance Industries Limited engages in hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, advanced materials and composites, renewable, financial services, retail, and digital services worldwide. It operates through the Oil to Chemicals, Oil and Gas, Retail, Digital Services, and Others segments. The company is involved in refining and marketing products, including liquefied petroleum gas, propylene, naphtha, gasoline, jet/aviation turbine fuel, kerosine oil, diesel, sulfur, and petroleum coke. It also provides polymers comprising high-density and low-density polyethylene (PE), linear low-density PE, homopolymer, random and impact copolymer, and polyvinyl chloride; fiber intermediates that include purified terephthalic acid, and ethylene glycols and oxide; aromatics, such as paraxylene, ortho xylene, benzene, and linear alkyl benzene and paraffin; and textiles that consist of fabrics, apparel, and auto furnishings. In addition, the company offers elastomers, such as polybutadiene rubber, styrene butadiene rubber, and butyl rubber; fiber and yarn polyesters; and bioenergy solutions, including compressed biogas, and pellets and briquettes. Further, it engages in oil and gas exploration and production activities; operation of various stores comprising supermarkets, hypermarket, wholesale cash and carry, specialty, and online stores; operation of media and entertainment platforms, and Network18 and television channels; and publishing of magazines. Additionally, the company provides highway hospitality and fleet management services, as well as digital services, such as connectivity, fiber, mobile devices, apps, business, and other digital solutions. Reliance Industries Limited was founded in 1957 and is based in Mumbai, India.