RELIANCE INDUSTRIES LTD.                                                                                                  DATE: 03/05/2025
NSE: RELIANCE | BSE: 500325

LARGE CAP | MARKET CAP: ₹19,24,844 Cr
SECTOR: CONGLOMERATE
INDUSTRY: ENERGY, TELECOM, RETAIL, DIGITAL & MEDIA

ALL NUMBERS AND INFORMATION WHEN REPORT MADE

COMPANY OVERVIEW

Reliance Industries Ltd. (RIL), founded by Dhirubhai Ambani and currently chaired by Mukesh Ambani, is India's most valuable private sector enterprise. With diversified operations across Oil-to-Chemicals (O2C), Retail, Digital Services (Jio), Oil & Gas Exploration & Production, and Media & Entertainment, RIL has evolved into a structurally resilient and forward-looking conglomerate.

• Promoter Holding: ~50%, ensuring long-term alignment and control.
• Vision: Building consumer-facing businesses to complement traditional energy operations.
• Strategic Edge: Scale, integration, and digital transformation at core.

BUSINESS SEGMENTS

1. Oil-to-Chemicals (O2C) – ~57% of Revenue
• Operates the world’s largest refining complex (Jamnagar, 1.4 MMBPD capacity).
• Strong presence in petrochemicals, polymers, polyester, and intermediates.
• Integrated logistics and feedstock sourcing give a cost advantage.
2. Retail – ~23% of Revenue
• India’s largest retailer with 15,200+ stores and presence in FMCG, electronics, fashion, pharma, and groceries.
• Owns key digital commerce platforms: JioMart, Ajio, Netmeds, Zivame.
• Consumer base of ~190 million, with aggressive offline and online expansion.
• Recent acquisitions include Metro Cash & Carry, Urban Ladder, and Hamleys.
3. Digital Services (Jio) – ~11% of Revenue
• Leading telecom operator with ~410 million subscribers.
• Broadband, fibre-to-home, enterprise cloud and 5G expansion are underway.
• Major global investors like Facebook, Google, Silver Lake, and KKR hold minority stakes in Jio Platforms.
4. Oil & Gas Exploration and Production (E&P) – ~1% of Revenue
• Assets in Krishna-Godavari (KG-D6), Mahanadi, CBM fields.
• Domestic gas production is ramping up with discoveries and projects.
5. Media & Entertainment
• Through Network18 & Viacom18, presence across TV (CNBC-TV18, Colors, MTV), OTT (Voot), digital (Moneycontrol), and events (BookMyShow).
• Building a strong media-tech ecosystem.

STRENGTHS

• Diversification Across High-Growth Sectors: Minimises segment-specific volatility.
• Market Leadership: Dominant in refining, organised retail, and telecom.
• Robust Cash Position: ₹1.06 lakh Cr in cash gives headroom for capex, buybacks, and debt servicing.
• Strategic Acquisitions & Partnerships: Boosts capabilities and market share.
• Digital Ecosystem Synergies: Cross-leveraging telecom, retail, and fintech services.
• Global Recognition: High institutional investor interest in Jio and Retail.
• Integrated O2C Operations: Cost advantage, margin control, global competitiveness.
• Strong Governance and Management Vision: Consistent long-term planning and execution.

WEAKNESSES

• Moderate Profit Growth: 3-year profit CAGR of 5.84%, lagging revenue growth.
• Slight Margin Compression: Dip in NPM and OPM recently due to high input costs.
• Conglomerate Complexity: Hard to independently value each business segment.
• Lower Capital Efficiency: ROE and ROIC remain moderate despite scale.
• High Capex Needs: Ongoing investments in telecom, retail, and green energy can impact short-term FCF.

OPPORTUNITIES

• Digital India & 5G Expansion: Jio well-positioned to lead India’s data revolution.
• Retail Formalisation: Growth potential in Tier II/III cities, digital commerce.
• Value Unlocking via De-mergers: Potential IPOs of Jio, Retail, or O2C segments.
• Petchem & Green Energy Demand: Supports O2C segment expansion.
• Rising Gas Demand: E&P growth through domestic gas production scale-up.
• EV & Hydrogen Economy: Major thrust into renewables and green hydrogen.
• AI & Cloud Ventures: New digital verticals in edge computing and AI services.

THREATS

• Regulatory Overhang: Frequent policy changes across telecom, retail, and energy.
• Global Oil Price Volatility: Impacts refining and O2C margins.
• High Competition: Airtel, Amazon, Flipkart, Adani, and global players in all verticals.
• Technological Obsolescence: Requires constant investment in digital platforms.
• Execution Risk: Multiple large-scale projects under implementation.
• Geopolitical Risks: May affect energy sourcing, exports, and operations.
• Retail Segment Risk: High customer concentration in some sub-segments.

Key Points ( Annual )

Revenue: 7.1% YoY

Net Profit: 16.8% YoY

EPS: 60.1 Vs 51.5 YoY

OPM: 16.84% Vs 17.69% YoY

KEY RATIOS

OVERALL ASSESSMENT

Reliance Industries is the biggest conglomerate powerhouse in Indian business, with unmatched scale, diversification, and strategic vision. Visionary leadership has transformed the company from an energy major to a consumer-tech-retail conglomerate, backed by robust financials and strong execution.

While it offers long-term wealth creation potential, investors should monitor the pace of monetisation, profitability trends, regulatory developments, and execution of green and digital initiatives. The much-awaited value-unlocking plan by Jio IPO is also important.

Technical

On the daily chart, the Reliance is showing a trend reversal after forming a double bottom. We can see the clear breakout after the long accumulation. Weekly RSI above 60 shows strength. Strong volume buildup near the support also. The stock can continue its momentum up to its ATH.

DISCLAIMER: Stock market investment/trading is subject to market risk. This report has been prepared by THE MONEY MINT, the marketing name of the RITU CHAUHAN SEBI (Research Analyst) (Registration No.. INH000014456) and is solely for the information of the recipient only. The report must not be used as a singular basis for any investment decision. The views herein are general and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in securities of the companies referred to in this document and should consult their advisors to determine the merits and risks of such investment. The information and opinions contained herein have been compiled or arrived at based upon information obtained in good faith from publicly available sources. Such information has not been independently verified and no guarantee, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change according to market scenarios. Descriptions of any company or companies or their securities mentioned herein are not intended to be complete. THE MONEY MINT or RITU CHAUHAN, or associates, are not obliged to update this report for such changes. THE MONEY MINT or RITU CHAUHAN or the associates are not responsible for profit or loss.

CONTACT: themudrakaars001@gmail.com

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