Reliance Industries Ltd.
ISIN: INE002A01018 • Market Cap: ₹17.69 Lakh Cr
The 5-Pillar Quality Audit for Reliance Industries Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (16.1%), Return on Capital Employed (9.2%), and equity compounding (8.9%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.41 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (8.1%) and 3Y PAT CAGR (8.1%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 23.68 vs PEG of 1.51 and Dividend Yield of 0.5%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 50.5%, backed by 38.5% institutional ownership.
Key Fundamental Strengths
Deep Institutional Sponsorship (38.5%)
Mutual funds, domestic DIIs, and foreign FIIs hold 38.5%, providing strong governance scrutiny.
Consistent Market Standing (Large Cap)
Established player in the Oil Gas & Consumable Fuels sector with an overall fundamental quality score of 68/100.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 9.2%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Sectoral & Macro Headwinds (Oil Gas & Consumable Fuels)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Oil Gas & Consumable Fuels space.
Quantitative Strategy Eligibility
Checking RELIANCE against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 68/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Oil Gas & Consumable Fuels Sector Peer Comparison
Compare RELIANCE directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Reliance Industries Ltd. (RELIANCE)Current | 68/100 | ₹17.69 Lakh Cr | 23.68 | 9.2% | 0.41 | — |
| Oil & Natural Gas Corporation Ltd. (ONGC) | 67/100 | ₹2.99 Lakh Cr | 6.88 | 12.7% | 0.38 | View |
| Coal India Ltd. (COALINDIA) | 73/100 | ₹2.47 Lakh Cr | 7.90 | 19.6% | 0.12 | View |
| Indian Oil Corporation Ltd. (IOC) | 69/100 | ₹1.93 Lakh Cr | 5.73 | 18.9% | 0.55 | View |
| Bharat Petroleum Corporation Ltd. (BPCL) | 72/100 | ₹1.34 Lakh Cr | 7.83 | 25.6% | 0.45 | View |
| Hindustan Petroleum Corporation Ltd. (HINDPETRO) | 63/100 | ₹77,676 Cr | 46.48 | 22.2% | 0.78 | View |
Frequently Asked Questions: Reliance Industries Ltd.
Q:What is the 5-Pillar Fundamental Score for Reliance Industries Ltd. (RELIANCE)?
Reliance Industries Ltd. has a RupeeTools Fundamental Score of 68/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (57/100), Financial Health (77/100), Growth (55/100), Valuation (70/100), and Ownership Quality (85/100).
Q:Is RELIANCE fundamentally strong for long-term investment?
RELIANCE currently holds a moderate quality rating of 68/100. While it operates in the Oil Gas & Consumable Fuels sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does RELIANCE pass the Coffee Can Investing filter?
No. RELIANCE does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does RELIANCE compare against other Oil Gas & Consumable Fuels peers?
Within India's Oil Gas & Consumable Fuels sector, RELIANCE trades at a P/E of 23.68 and generates an ROCE of 9.2%. Compare its 5-Pillar score of 68/100 against top sector peers like Oil & Natural Gas Corporation Ltd. (67/100), Coal India Ltd. (73/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.