[Infographics] Reliance Industries Limited | What Will The Reliance Industry Stock Be Like In the Next 30 Years?

Does anybody in India don’t know about Reliance Industries Limited? The answer would be No.

Reliance Industries is a Fortune 500 company and the biggest private sector organization in India. In the beginning, it evolves from being a textiles and polyester company to a single player in energy, materials, retail, entertainment, and digital services.

Reliance’s products and services portfolio touch almost all Indians on a daily basis, across economic and social spectrums.

Reliance was founded by Mr. Dhirubhai Ambani and is now promoted and managed by his elder son, Mr. Mukesh Dhirubhai Ambani. Ambani’s family has about 50% shareholding in the conglomerate.

Energy Oil & Gas – Refining & Marketing

Large capital With a market cap of ₹17,47,701 Crores

Key Takeaway

Revenue share

  • 21% Retail business
  • Only 9% Digital service business
  • 50% Refining & Marketing Business
  • 19% Petrochemicals Business
  • 0.5% Oil and Gas Exploration & Production Business
  • 1% Media & Entertainment

Retail Business

The company’s subsidiary, Reliance Retail Ltd (RRL) is India’s largest retailer by revenue and profitability. It operates about 11,800 stores across India and caters to the demand of over 125 million registered customers.

Reliance Retail’s store concepts span across all major consumption baskets which accounts for over 80% of the consumption needs of Indian households. It also operates the largest portfolio of esteemed international partner brands such as Emporio Armani, Diesel, Tiffany & Co, and many more.

Till November 2020, reliance has raised about 47,250 crores from selling a 10.1% stake in Reliance Retail Ventures Ltd.

Digital Services Business (Jio)

The digital services business is the most profitable with an EBITDA Margin of 33%.

Jio Platforms has made investments in excess of US$50 billion since its inception to create the largest and most advanced digital and connectivity ecosystem in India. Starting in 2016, it has built a strong market position in a short time.

Today, it’s the biggest player in the telecom sector with a 35% market share with a base of more than 400 million subscribers. It aims to offer seamless wire-line services across FTTH and enterprises in the next phase of the connectivity rollout.

Its passive infrastructure includes 175,000 towers and 1.1 million route km for its fiber business. It is also a partner in 33,100 km of undersea cable systems.

Reliance sold a stake in Jio Platforms Ltd to make it a debt-free company by March 2021. It sold a 33% stake for ~1.5 lakh crores to 13 marquee investors like Facebook, Qualcomm, Google, KKR, Silver lake, etc. in just 2 months.

Refining & Marketing Business

RIL owns Jamnagar refining facility which is the world’s largest refining hub with a capacity of 1.24 million barrels per day. 

It accounts for ~27% of the total oil refining capacity of India.

Almost 57% of the products from refinement are exported to other countries. The company uses 23% of its refined products and the rest 18% are sold domestically. It also owns a network of 1,400 fuel stations across India.

Petrochemicals Business

Reliance is the largest producer of petrochemicals in the country and amongst the top ten in the world. It produces an extensive chain of polymers, elastomers, polyesters, aromatics, etc. It is working towards transforming its petrochemical business into a solutions-driven consumer-facing business.
It has various petrochemical plants in India located in Dahej, Hazira, Hoshiarpur, Jamnagar, Vadodara, and other cities.

Oil and Gas Exploration & Production Business

RIL as an integrated E&P Operator is India’s leading Deepwater Operator. Its domestic portfolio comprises conventional oil and gas blocks in Krishna Godavari and Mahanadi basins and two Coal Bed Methane (CBM) blocks, Sohagpur (East) and Sohagpur (West) in Madhya Pradesh.
It produces oil & gas in the U.S. shale in 2 separate Joint Ventures with major oil giants Cheveron and Ensign Natural resources.

Media & Entertainment

Reliance is the owner of Network 18 Media which operates 56 channels in India spanning news and entertainment. It is also in the Film industry through Viacom studios and Jio Studios.

Reliance Industries Today

RELIANCE INDS
RELIANCE.NS
₹ 2,405.40
-1.48%
Marketcap
16.27T
Volume
₹ 14,839,040.00
Shares
6,765,969,920
Range
₹ 2,388.85 - ₹ 2,475.90
52 Week Range
₹ 1,830.00 - ₹ 2,751.35
RELIANCE INDS
sector
Energy
industryOil & Gas Refining & Marketing
addressMaker Chambers IV, Mumbai, India
countryIndia
phone91 22 3555 5000
websitehttp://www.ril.com
RELIANCE INDS
₹ 2,405.40
Open ₹ 2,468.00
High ₹ 2,475.90
Marketcap 16.27T
Close ₹ 2,405.40
Low ₹ 2,388.85
Volume ₹ 14,839,040.00

Reliance Industries Chart

Reliance Industries Index Presence

Reliance present in 34 indices list

NIFTYALPHANIFTYENERGY NIFTY100WEIGHTINFTYEQWGTNIFTY100
NT100LOW30NIFTYLEGMID250NIFTY200NIFTYCDTYNIFTYINFRAST
NFTALQLV30NIFTYLOWVOLNT100ALP30SENSEXBSE500
BSE100ENERGYBSE200LMI250
CARBONEXMFGS&PDIVSTABLEESG100
LIQ15NFTALL30NIFTY50NIFTY100
SNSX50OILGASS&PLARGEMIDCAP
LRGCAPBSE100LARGECAPTMLALLCAPSHA500

Reliance Industries Infographics

Reliance Industries infographics created by Kamlesh Rode
Reliance Industries infographics created by Kamlesh Rode in https://www.figma.com

Overview of Reliance Industries

Reliance industries infographics-overview
PE RatioSector PEPB RatioSector PBDividend YieldSector Div Yield
35.5733.412.193.110.27%1.05%

Key Takeaways

  • Share price of Relience industries limited stock is lower than it’s intrinsic value.
  • This share gave high return compared to fixed-deposits.
  • This company does not offer good dividend returns.
  • This share is not in ASM/GSM list.

Read more about PE ratio with infographics | Read more about dividend and dividend yield with infographics

Financials of Reliance Industries Limited

reliance industries infographics-financials

Income Sheet Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Total Revenue4,01,685.005,77,698.006,10,806.005,05,153.00
EBITDA74,184.0092,656.0097,836.001,03,222.00
PBIT57,478.0071,722.0075,633.0076,650.00
PBT49,426.0055,227.0053,606.0055,461.00
Net Income36,075.0039,588.0039,354.0049,128.00
EPS60.3666.263.5774.65
DPS5.946.446.447
Payout ratio0.10.10.10.09
EPS and DPS in ₹. Other numbers except for Payout Ratio in ₹ cr

Income Statement Key takeaway

Higher than Industry Revenue Growth

Over the last 5 years, revenue has grown at a yearly rate of 12.03%, vs industry avg of 5.51%

Lower than Industry Net Income

Over the last 5 years, net income has grown at a yearly rate of 10.56%, vs industry avg of 11.63%

Increasing Market Share

Key Points

  1. Total revenue growth is good in the year 2018 to 2019.
  2. In year 2020 and 2021, Total revenue growth stayed constant.
  3. Net income is constantly growing.
  4. Earnings per share(EPS) is continuously growing from 2018 to 2021.

Balance Sheet Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Current Assets1,83,786.002,27,386.002,58,260.003,73,011.00
Non Current Assets6,27,487.007,70,244.009,04,755.009,47,054.00
Total Assets8,11,273.009,97,630.0011,63,015.0013,20,065.00
Current Liabilities3,13,852.003,14,023.004,12,916.002,77,568.00
Non Current Liabilities2,00,376.002,88,215.002,88,752.002,43,065.00
Total Liabilities5,14,228.006,02,238.007,01,668.005,20,633.00
Total Equity2,97,045.003,95,392.004,61,347.007,99,432.00
Total Liabilities & Shareholder’s Equity8,11,273.009,97,630.0011,63,015.0013,20,065.00
Total Common Shares Outstanding597.81598.23639.96676.21
Shares outstanding numbers in cr. Other numbers in ₹ cr

Balance Sheet Key Takeaway

Lower than Industry Debt to Equity Ratio

Over the last 5 years, the debt to equity ratio has been 70.19%, vs industry avg of 78.61%

Higher than Industry Current Ratio

Over the last 5 years, the current ratio has been 78.06%, vs industry avg of 75.75%

Key Points

  1. Current asset of Reliance Industries increases manyfolds from 2018 to the year 2021.
  2. Total asset in the year 2021 is 13 Lac Crores, very huge number.
  3. This company is debt free in March 2021.

Cash Flow Statement Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Net Change in Cash1,266.003,745.0019,839.00-13,523.00
Changes in Working Capital8,694.00-40,973.009,530.00-53,944.00
Capital Expenditures73,953.0093,626.0076,517.001,05,837.00
Free Cash Flow-2,494.00-51,280.0018,360.00-79,652.00
All numbers in ₹ cr

Peers of Reliance Industries

reliance industries infographics-peers
StockPE RatioPB RatioDividend Yield
Reliance Industries Ltd35.572.190.27%
Reliance Industries Ltd. – Partly Paid Up
Indian Oil Corporation Ltd5.731.18.89%
Bharat Petroleum Corporation Ltd6.031.8216.95%

Key Takeaway

  1. Reliance Industries gives good price-to-earnings ratio(PE) of 35, very high compared to its peers.
  2. This company does not offer good dividend or dividend yield compared to peers

Shareholders of Reliance Industries

Reliance industries infographics-shareholding

Promoter Holdings Trend

Total Promoter Holding

In last 6 months, promoter holding in the company has almost stayed constant

Low Pledged Promoter Holding

Pledged promoter holdings are insignificant

Institutional Holdings Trend

Mutual Fund Holding

In the last 3 months, the mutual fund holding of the company has almost stayed constant

Foreign Institutional Holding

In last 3 months, foreign institutional holding of the company has almost stayed constant

 Reliance Industries Investors Table

InvestorsSep-18Dec-18Mar-19Jun-19Sep-19Dec-19Mar-20Jun-20Sep-20Dec-20Mar-21Jun-21
Promoters 47.2747.1947.2747.2950.0550.0350.0750.3750.4950.5450.5850.59
FIIs 24.4124.0224.3924.423.7624.5424.0824.7525.2325.1825.6625.11
DIIs 11.7412.311.8611.7214.3613.7513.7813.5813.1512.912.6213.09
Government 0.170.170.180.180.190.190.20.210.20.20.20.18
Public 16.4116.3116.2916.4211.6511.4911.8711.110.9311.1910.9411.03

Key Takeaway

  1. Total promoter holding reached to more than 50%
  2. Foreign Institution (FII) have more than 25% of shareholding in Reliance industries stock.
  3. DII have more than 13% of stakes in Reliance Industries.
  4. Public investors have 11% investment.

Dividend and Split

Reliance industries infographics - dividend, bonus

Dividend Table

Cash DividendDividend/ShareEx Date
Final₹7.0011-Jun-21
Cash DividendDividend/ShareEx Date
Final₹6.502-Jul-20
Cash DividendDividend/ShareEx Date
Final₹6.502-Aug-19
Cash DividendDividend/ShareEx Date
Final₹6.0027-Jun-18
Cash DividendDividend/ShareEx Date
Final₹11.0013-Jul-17

Read more about dividend and dividend yield with infographics

Bonus/Split Table

Rights IssueRatioEx Date
1:15 Rights Issue of Equity Shares1:1513-May-20

Key Takeaway

  1. Reliance Industries gave consistent dividend every year from 2018 to 2021 to the shareholders.
  2. Maximum Rs11 to Rs6 Dividend per share given in the past
  3. Due to rights issue RIL gave bonus of Ratio 1:15 to the shareholders.

Strength and Limitations

Strengths

  • The company has an efficient Cash Conversion Cycle of -75.83 days.
  • The company has a high promoter holding of 50.59%.
  • Company has no debt.

Limitations

  • The company has shown a poor profit growth of -1.68% for the Past 3 years.
  • The company has shown a poor revenue growth of -5.38% for the Past 3 years.
  • Company has negative cash flow from operations of -512.
  • Tax rate is low at -17.39.
  • The company is trading at a high PE of 56.64.

Expert Forecast

Reliance industries infographics- Expert forecast

The stock forecast of RIL stock for the year 2022

HIGH

Rs. 3008

MEDIAN

Rs. 2367

LOW

Rs. 1578

Future stock price targets of Reliance Industries stock

The target of Reliance IndustriesFuture Stock Price
20223000 to 3200
20255500 to 6000
203010000 to 12000
203522000 to 25000
204040000 to 50000

Please Note

These are the stock forecast or stock predictions solely based on historical data and related estimates by industry experts. Please do take advice from certified people and then go for investment.

Here predictions are just data for your information. We here declare that the stock forecast team does not responsible for any price changes or the price does not go expected. At last, it is solely based on how the stock market is running at that certain conditions.

Stock Forecast Predictions

Reliance industries infographics - future forecast

Reliance industries stock is doing exceptionally well in terms of ratios.

This stock had a CAGR of more than 37% from the last 5 years which is a very huge number.

Earnings per share (EPS) is 46.39

The price-to-earnings ratio is 56.63

What if I invest in 10 stocks for the upcoming years? You will be pretty amazed by the return shown in the image above

These are future investment values are calculated based on a CAGR(Compound Annual Growth Rate) of 37.9%.

If this stock keeps CAGR average value for upcoming years, then look at the huge numbers

For my investment of Rs. 26270(10 RIL stocks)

For the first year, I will be getting more than 36 Thousand

For the next 5 years, the Investment will be more than 1.31, Lac

then for the next 10 years, the investment will touch 6L.

For the next 15 years, more than 32 Lacs will be the investment value.

and in the next 20 years, the investment will touch more than 1 Crore 65 Lacs.

Look at after 25 years number, they are huge. Almost 8 Crore 10 Lacs.

You must be laughing but CAGR with compounding giving this amazing result.

Read How Rs.10,000 converted into 1770 Crores Wipro case study?

Conclusion

As everybody knows how strong Reliance Industries Limited is in India. This stock is very fundamentally strong for the investors point of view. During Covid-19 this stock falled below 900. Now this stock is above 2600+ level.

RIL Sectors and Its revenue

  • Retail business(21%)
  • Digital service business(9%)
  • Refining & Marketing Business(50%)
  • Petrochemicals Business(19%)
  • Oil and Gas Exploration & Production Business(0.5%)
  • Media & Entertainment(1%)

Key Metrics

PE RatioSector PEPB RatioSector PBDividend YieldSector Div Yld
35.5733.412.193.110.27%1.05%

Check Reliance Industries Limited on NSE website.

Frequently Asked Questions

Que: Is it good to buy RIL share?

Ans: Advising investors to buy and hold the counter for short-term to medium term; Ravi Singhal, Vice Chairman at GCL Securities said, “Reliance shares are highly bullish and it may go up to ₹2700 per stock mark in short-term. So, once should look at every dip as buying opportunity in the counter.

Que: Is RIL publicly traded?

Ans: Reliance is one of the most profitable companies in India, the largest publicly traded company in India by market capitalisation, and the largest company in India as measured by revenue after recently surpassing the government-owned Indian Oil Corporation.

Que: What does RIL stand for?

Ans: RIL stands for Reliance Industries Limited. This company is well well known for its Digital Revolution(Jio) in India.

Que: Is Jio part of RIL stock?

Ans: Yes, Jio is a part of Reliance Industries. RIL gets 9% of revenue every year through JIO.

Que: Can I buy shares in Reliance?

Ans: Yes anyone can buy shares of Reliance from a Dmat account. It is publically traded in National Stock Exchange(NSE)

Que: How a first time equity investor will buy stock of Reliance Industries Ltd?

Ans: Yes anyone can buy shares of Reliance from a Dmat account. It is publically traded in National Stock Exchange(NSE)

Why Stock forecast by Kamlesh Rode?

5/5 - (1 vote)
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“I love to help people in technology, spirituality and always want people to get better in their lives. Today I’m a stock market enthusiast, a stock trader, web-mobile app developer, blogger, and a spiritual being.”

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