Reliance Industries Limited Fundamental Analysis (NSE: RELIANCE.NS)
Reliance Industries Limited Fundamental Analysis (NSE: RELIANCE.NS)
Reliance Industries Limited (NSE: RELIANCE.NS) shows weak financial fundamentals with a PE ratio of 23.62, profit margin of 6.65%, and ROE of 7.64%. The company generates $11230.1B in annual revenue with moderate year-over-year growth of 7.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RELIANCE.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakRELIANCE.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRELIANCE.NS trades at attractive valuation levels.
Growth Score
ModerateRELIANCE.NS shows steady but slowing expansion.
Financial Health Score
ModerateRELIANCE.NS shows balanced financial health with some risks.
Profitability Score
WeakRELIANCE.NS struggles to sustain strong margins.
Key Financial Metrics
Is RELIANCE.NS Expensive or Cheap?
P/E Ratio
RELIANCE.NS trades at 23.62 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RELIANCE.NS's PEG of -2.84 indicates potential undervaluation.
Price to Book
The market values Reliance Industries Limited at 1.63 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.94 times EBITDA. This is generally considered low.
How Well Does RELIANCE.NS Make Money?
Net Profit Margin
For every $100 in sales, Reliance Industries Limited keeps $6.65 as profit after all expenses.
Operating Margin
Core operations generate 11.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.64 in profit for every $100 of shareholder equity.
ROA
Reliance Industries Limited generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Reliance Industries Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Reliance Industries Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
RELIANCE.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.84
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How RELIANCE.NS Stacks Against Its Sector Peers
| Metric | RELIANCE.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.62 | 21.00 | Worse (Expensive) |
| ROE | 7.64% | 1268.00% | Weak |
| Net Margin | 6.65% | 1258.00% | Weak |
| Debt/Equity | 0.00 | -1.76 (disorted) | Distorted |
| Current Ratio | 0.00 | 2.22 | Weak Liquidity |
| ROA | 0.00% | 4309.00% | Weak |
RELIANCE.NS outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Reliance Industries Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.32%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
64.78%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
111.38%
Industry Style: Cyclical, Value, Commodity
High Growth