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Reliance Industries Ltd

NSE: RELIANCE BSE: 500325

1359.70

(2.80%)

Sun, 24 May 2026, 07:35 pm

Reliance Industries Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are thoroughly covered by earnings (10.9x coverage).
  • Dividends after 3 years are expected to be thoroughly covered by earnings (10.5x coverage).
  • Dividends per share have been stable in the past 10 years.
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Cons

  • Reliance Industries's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Reliance Industries's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Reliance Industries's earnings growth is expected to exceed the India market average.
  • Reliance Industries's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Reliance Industries's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • Performance (ROE) is expected to be above the current IN Oil and Gas industry average.
  • An improvement in Reliance Industries's performance (ROE) is expected over the next 3 years.
  • Reliance Industries's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for Reliance Industries is expected to increase but not above the 50% threshold in 2 years time.
  • Reliance Industries's earnings are expected to grow by 18.9% yearly, however this is not considered high growth (20% yearly).
  • Reliance Industries's earnings are expected to decrease over the next year.
  • Reliance Industries's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Reliance Industries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Reliance Industries's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Reliance Industries's revenue is expected to grow by 8% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Reliance Industries is profitable, therefore cash runway is not a concern.
  • Reliance Industries is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (29.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.1x coverage).
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Cons

  • Reliance Industries's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Debt is not covered by short term assets, assets are 0.8x debt.
  • Reliance Industries's long term commitments exceed its cash and other short term assets.
  • The level of debt compared to net worth has increased over the past 5 years (72.6% vs 72.9% today).
  • Reliance Industries's level of debt (72.9%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The average tenure for the Reliance Industries board of directors is over 10 years, this suggests they are a seasoned and experienced board.
  • Mukesh's compensation has been consistent with company performance over the past year, both up more than 20%.
  • The average tenure for the Reliance Industries management team is over 5 years, this suggests they are a seasoned and experienced team.
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Cons

  • Mukesh's remuneration is higher than average for companies of similar size in India.
  • Reliance Industries individual insiders have sold more shares than they have bought in the past 3 months.

misc

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Pros

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    Cons

    • Reliance Industries has significant price volatility in the past 3 months.

    past

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    Pros

    • Reliance Industries's year on year earnings growth rate has been positive over the past 5 years.
    • Reliance Industries has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
    • Reliance Industries's earnings growth has exceeded the IN Oil and Gas industry average in the past year (10.6% vs -22%).
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    Cons

    • Reliance Industries's 1-year earnings growth is less than its 5-year average (10.6% vs 12.7%)
    • Reliance Industries used its assets less efficiently than the IN Oil and Gas industry average last year based on Return on Assets.
    • Reliance Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

    value

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    Pros

    • 500325 outperformed the Oil and Gas industry which returned -4% over the past year.
    • 500325 outperformed the Market in India which returned -14.5% over the past year.
    • BSE:500325 is up 10.9% along with the Oil and Gas industry (10.5%) over the past month.
    • BSE:500325 is up 10.9% outperforming the market in India which returned 8% over the past month.
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    Cons

    • Reliance Industries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Reliance Industries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Reliance Industries is overvalued based on assets compared to the IN Oil and Gas industry average.
    • Reliance Industries is poor value based on expected growth next year.
    • Reliance Industries is overvalued based on earnings compared to the IN Oil and Gas industry average.
    • Reliance Industries is overvalued based on earnings compared to the India market.

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