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Reliance Industries Equity Research Report

Reliance Industries Limited is India's largest private sector company operating in refining, petrochemicals, and telecommunications. It has the largest refining complex in the world located in Jamnagar, India. Reliance generates most of its earnings from refining and petrochemicals. It has also made investments in US shale gas and is expanding into consumer retailing and telecom. The report provides an overview of Reliance's business segments and financials. It then evaluates the company using valuation techniques like DCF and relative valuation to arrive at a target price.

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21 views14 pages

Reliance Industries Equity Research Report

Reliance Industries Limited is India's largest private sector company operating in refining, petrochemicals, and telecommunications. It has the largest refining complex in the world located in Jamnagar, India. Reliance generates most of its earnings from refining and petrochemicals. It has also made investments in US shale gas and is expanding into consumer retailing and telecom. The report provides an overview of Reliance's business segments and financials. It then evaluates the company using valuation techniques like DCF and relative valuation to arrive at a target price.

Uploaded by

HEM BANSAL
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

Equity Research Report

on

Submitted by:
Submitted to: Group-6 (IAPM)
Dr. Mayank Kumar
Manohar Gupta
Yash Jalan
Kirti Dang
Krishnakant
Margesh Patel
Sanjay KV
Business Overview

• Reliance Industry limited(RIL) is the largest private player in the refining,


petrochemical and E&P sectors in India.
• While RIL’s refining complex in Jamnagar is the largest in the world and among
the most complex, it is also among the largest integrated petrochemical
producers globally.
• RIL has made significant investments in US shale gas.
• In terms of EBIT, Refining contribute 60% and Petrochemicals 30%.
• RIL is also expanding its presence in the areas of consumer retailing and
telecom.
• EBIT contribution from retail is 2% while telecom operations have been very
successful after their launch

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Key Highlights

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Shareholding pattern (%)

CMP 1272.75(0.8%)
As On Dec-18 Dec-17 Dec-16
BSE 500325
Promoter 46.2 46.2 45.1
NSE RELIANCEEQ
DII 11.3 11.4 12.3
ISIN INE002A01018
FII 26.2 26 24.2

16.3 16.5 18.5 FACE VALUE (RS.) 10


Others
SECTOR Refineries

#FII Includes depository receipts Market Cap Large Cap


52 Week High 1417.00
52 Week Low 941.35
SECTOR Refineries
Market Cap Large Cap

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•Stocks with improving cash flow, with good durability Institutions decreasing their shareholding
(subscription)
167.1% returns for Nifty 500 over 6.4
875.5% returns for Nifty 500 over 5.1 years
Increasing profits every quarter for the past four
years
quarters
626.2% returns for over 5.4 years
Stocks - DVM Select Long Term (subscription)
383.6% returns for Stocks on DVM Watch over 5.7
years
•Promoter shareholding increase
Strengths Weaknesses

Opportunities Threats
•High Momentum Scores (Technical Scores greater  Delay in the commissioning of key upcoming
than 50) core projects (petcoke)
•Rising Delivery Percentage Compared to Prev Day  Weak US natural gas prices could lower the
•Price crossing above SMA20 today, and greater profitability of shale gas assets
than SMA5
 Telecom business to have a ~5 year gestation,
•Stocks that Benefit from Lower Crude Oil Prices before becoming profitable

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Valuation using DCF approach
Assumptions

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Sensitivity Analysis

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Oil & Gas Valuation

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Petrochemical Valuation

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Retail Valuation

11
Digital Valuation

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Relative Valuation

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THANK YOU !

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