Reliance Industries Limited (RIL) is an Indian conglomerate operating in several spheres like energy, petrochemicals, textiles, retail, natural resources, and telecommunications.
*Note: Prices that are specified above is based on INR
RIL Historical Share Price (NSE)
The market cap of Reliance as of February 2018 is more than Rs.6,02,502 crore, making it the company with the largest market capitalisation in the country.
Company’s Wealth and Recent PerformanceQ1 FY 2018-19
- For the quarter ended on June 30, 2018, Reliance Industries Limited reported its consolidated revenue to be at Rs.1,41,699 crore. With respect to the June quarter of the previous year, this marks an increase of 56.5% in the revenue.
- This strong growth was led by solid higher volumes in petrochemicals and a remarkable performance in the retail and Jio segments.
- Its consolidated net profit for the quarter was reported to be Rs.9,459 crore - a growth of 17.9% y-o-y. The company’s EBITDA was also up by 51% y-o-y to Rs.21,083 crore.
- Considering the basic earnings per share (EPS) for the June quarter, it was Rs.16 as against an EPS of Rs.13.5 in the same period, last year. As for the outstanding debt, it increased by roughly Rs.21,000 crore y-o-y to Rs.2,42,116 crore.
- For the year ended on March 31, 2018, the total consolidated revenue of Reliance Industries Limited was Rs.4,30,731 crore - a growth of 30.5% over the previous financial year. This massive surge in the revenues was driven by hyper-growth in Retail and Jio segments, and high oil prices.
- The consolidated EBITDA for the year was Rs.71,232 crore as against an EBITDA of Rs.52,544 crore for the previous year.
- The consolidated net profit for the year was stated to be at Rs.36,075 crore, as against a profit of Rs.29,901 crore reported for the FY 2016-17. Similarly, the company’s earnings per share (EPS) also grew by 20.3% y-o-y to Rs.60.9.
- The revenue for the retail segment grew by 105% y-o-y to Rs.69,198 crore. A more exceptional growth was seen in the Jio segment, with its revenue as on March 31, 2018, being Rs.23,916 crore.
- The company’s debt-equity ratio for the year was 0.75.
- Reliance has reported strong numbers in its Q3 FY18 consolidated results. Turnover for the third quarter was reported to be at Rs.1,09,905 crore - an 8.6% increase over the last quarter and a 30.5% increase over the Q3 FY17. This has been possible owing to swift scaling in Jio and retail segments, in addition to greater volumes in petrochemicals.
- Similarly, EBIT (Earnings before interest and taxes) for the quarter was Rs.13,789 crore. This is a 14.5% increase over the last quarter and 44.8% increase over 3Q FY17. Correspondingly, the net profit for the same term was Rs.9,423 crore.
- Retail segment, Jio, and petrochemicals were the profit drivers for the third quarter. EBIT for petrochemicals was a little over Rs.5,500 crore, while for Jio, it was at Rs.1,440 crore. This impressive growth came in Jio’s second quarter of commercial operations, wherein its gross revenue increased by 12.7% over the last quarter.
- Furthermore, revenue for the retail segment increased dramatically to Rs.18,798 crore from Rs.8,688 crore in Q3 FY17. This was owing to a strong festive demand and exceptional performance in all consumption sectors.
- Operating profit before other income and depreciation also increased during the same quarter by 52% to Rs.17,588 crore.
- Similarly, Earnings per Share (EPS) for this quarter have also increased by 25.2% with respect to 3Q FY17, to Rs.16.
- On January 2, 2018, the share price of Reliance Industries Limited was Rs.913 on the National Stock Exchange. Over the course of January, the stock price moved up by a little over 5% to touch the Rs.990 mark on January 23. However, this rise was followed by a gradual decline in the prices and consequently, the scrip dipped into Rs.880 region in early February.
- The Reliance shares were quick enough to recover and by mid-Feb, they had ascended back into the Rs.900 territory. For the remainder of the month, the shares were seen changing hands at levels above Rs.920. Over the course of March, the shares dipped marginally although they still managed to stay buoyant at levels above Rs.900.
- In April, the share price of Reliance rose once again and the scrip gained a little over 10% over the month to touch the Rs.980 mark. Things didn’t change considerably until the first half of May, with the shares maintaining their heading at levels above Rs.980. In the second half of the month, the prices dipped once again, only to follow it with another steady rise in June.
- In June, the shares managed to cross the important mark of Rs.1,000. In the same month, the company announced a final dividend of 60%. Through the course of July and August, the shares incurred a dramatic rise. The scrip gained close to 20% in July with the closing price on July 31 being Rs.1,186 on the NSE.
- The prices continued to soar in August and eventually, the scrip reached its 52-week high at Rs.1,329 on the NSE. As of early September, the shares are trading at levels close to Rs.1,230.
Reliance Industries Limited Stock Returns in 2016 and 2017
- Reliance stocks at the start of 2016 were being traded at around Rs.500 on BSE and NSE. As the Q3 FY16 results were announced, Reliance share price went up owing to a strong profit. However, this surge was soon followed by a dip that took the stock price close to Rs.450 by February.
- By early March, the share price of Reliance Industries Limited had recovered once again when the board announced an interim dividend. This, coupled with the launch of Reliance Ajio, took the stock price close to Rs.520.
- Through May and June, Reliance stock price didn’t vary substantially. It did go down below Rs.500, though it was only for a short while. The trend was observed till September, when Reliance Industries Limited launched Jio digital services. This was followed by a spike that eventually led the share price to a hit a 52-week high.
- However, stock markets failed to sustain this rise. The share price at the end of the year on NSE and BSE was close to Rs.530.
- 2017 started well for Reliance Industries stockholders. After the Q3 FY17 results were announced, the share price went up to touch Rs.540 on NSE and BSE. This rally did not last for long and the share price, once again, went down to touch Rs.520.
- In late February, Reliance announced that Jio would commence commercial operations in the country from April 1, 2017. Investors, expecting this segment to do well, rushed to buy Reliance shares. As a result, the share price of the SENSEX listed stock on NSE and BSE soared to Rs.600 in a matter of two days.
- By early March, Reliance shares were being traded at around Rs.615. The price was gaining momentum owing to a strong outlook, irrespective of the dips and spikes that were observed. In the first week of April, Reliance stocks were exchanging hands at close to Rs.700. After the consolidated results for the fourth quarter were announced, the share price hit a fresh 52-week high on the back of a strong performance.
- The months of May and June did not witness any significant spike. For most of the period, the price stayed above Rs.650. Towards the end of June, the stock price was once again inching closer to Rs.700.
- In July, the share price hit a 9-year high when Reliance announced new plans for Jio. The rally continued when 1:1 bonus was announced in addition to Jio handset. All these developments pushed the price of shares to Rs.800. The month of August saw the stock price trying to stabilise around the same amount.
- For most of September, the share price of the NIFTY listed stock stayed above Rs.800. By mid-October, the price had crossed Rs.860 and by the end of the month, the shares were being traded at roughly Rs.940 on NSE and BSE. This sharp spike may have been driven by the announcement to hike Jio plan rates that came around the same time.
- In November, the market cap of Reliance Industries Limited crossed Rs.6,00,000 crore, making it the first company to achieve that feat. This, coupled with the sale of bonds, drove the share price to Rs.950. The closing price at the end of the year was Rs.921.05.
Should you invest in Reliance Industries Limited?
- Reliance Industries is a profit-driven business entity. In addition to generating massive gains in refining & marketing, and petrochemicals segments over the years, the conglomerate has also started creating steady profits in the organised retail sector. A growth of more than 100% in revenue in the last one year is the proof of Reliance’s rapid expansion in this segment.
- Similarly, Reliance Jio has also seen a tremendous growth since its inception in 2016. Its customer base is rapidly increasing owing to their high-value plans. Furthermore, it is one of the fastest growing digital services enterprises in the country which is quite impressive, considering that Jio hasn’t been on the block for that long. We can expect more investment in this segment in the coming years.
- At the same time, it is important to remember that refining, petrochemicals, and oil-related activities still form the core of the business for Reliance. While it is good to see the company generate revenues from other segments like retail and media, a huge chunk of its overall revenue is still produced by the oil segment. Therefore, it is quite likely that the oil market sentiment around the world may play a part in Reliance’s performance in the coming years.
- All things considered, Reliance Industries Limited stock may present itself as a viable investment option, provided you intend to hold the shares for a couple of years. Reliance is considered to be a growth company and many experts have a positive outlook on the company’s revenues in the next few years. However, it is advisable that you carry out your own research before investing in the company.
Reliance Industries Limited is an Indian company with its head office in Mumbai, India. The company has several businesses across India which primarily deal in petrochemical refining and marketing, hydrocarbon production and exploration, textiles, retail, mass media, and telecommunications. Reliance Industries Limited has been around for more than 40 years and in that time, it has grown to become one of the most profitable companies in the country. Additionally, as of 2017, the company is also listed on the Fortune Global 500. Reliance Industries is also the largest exporter in India, with the company being responsible for 8% of the country’s total merchandise exports.
History of the Company
Dhirubhai Ambani co-founded the company back in the 1960s with his brother, Ramnikbhai Ambani, as Reliance Commercial Corporation. What started out as a yarn trading business soon expanded into textile business, with Vimal eventually becoming a major brand in the later years. In 1977, the company gave birth to equity trend in India through its initial public offer (IPO). The issue has been oversubscribed seven times. As the years went by, the company, now known as Reliance Industries Limited, entered other sectors such energy and telecom. The late 90s witnessed Reliance branching out in the energy game, especially with the construction of Jamnagar Refinery - the world’s largest crude oil refinery.
In early 2000, Reliance Industries Limited and Reliance Petroleum Limited were merged, which was soon followed by the discovery of gas in the Krishna Godavari Basin. Soon after this discovery, RIL purchased a majority stake in Indian Petrochemical Corporation Limited, which was later merged with the company.
After establishing a strong foothold in the energy sector, Reliance moved on to retail, mass media and telecommunications, as seen today.
Mukesh Dhirubhai Ambani - Chairman and Managing Director
Mukesh D. Ambani is the chairman, managing director and the largest shareholder of Reliance Industries Limited, who has been a member of the board since 1977. He is responsible for leading the development of the Jamnagar Refinery along with several state-of-the-art manufacturing facilities, that have amplified Reliance’s petrochemicals manufacturing abilities.
He also led the development, implementation, and expansion of infrastructure facilities and supply chain network in the retail sector. His efforts helped Reliance become a leading name in the retail segment. Furthermore, he also paved the way for Reliance Jio, which moved on to become one of the most popular networks in the country.
Mr. Mukesh Ambani completed his course in Chemical Engineering from the Institute of Chemical Technology, Mumbai, which he followed with an MBA from Stanford University, U.S.A. He has received several honours including Economic Times Business Leader of the Year, 2017, ‘Entrepreneur of the Decade’ - All India Management Association in 2013, and many more.
Reliance Industries Limited Listings and Indices
Reliance Industries Limited equity shares are listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), where stocks in large volumes are traded during working days. RIL has also issued Global Depository Receipts (GDR) which are listed on the Luxembourg Stock Exchange.
Reliance, being the company with the largest market capitalisation in the country, is listed on benchmark stock market indices such as NIFTY and BSE SENSEX. Apart from these, RIL also comprises NIFTY 100, S&P BSE 200, S&P BSE All Cap, S&P BSE Energy, and many more.
Reliance Industries Limited
Maker Chambers - IV
Mumbai 400-021, India
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