energy
Reliance Industries
RELIANCE · Nifty 50
₹1,332.7
Price 2026-06-17
At a Glance
Fundamental
90/100
STRONG
Trust
95/100
Verification
Coverage
89/100
HIGH
Quick Take
Reliance Industries scores 90/100 on fundamentals (strong). Reliance Industries: PE above historical average. BROAD EXPANSION regime.
Fundamental Score: 90/100 · STRONG · 2 signals detected
DuPont Analysis
ROE 9.1% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 9.07% is modest margin-driven and stable. Net margin of 7.7% × asset turnover of 0.49x × leverage of 2.4x.
What This Means
Net margin of 7.7% means the company keeps ₹7.7 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 0.49x means the company generates ₹0.49 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 2.4x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
29.3%
Operating
14.1%
Net
7.7%
Gross margin 29.3% → operating margin 14.1% → net margin 7.7%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.
Financial Health
Earnings Quality
STRONGCash flow covers net income 2.3x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.
Debt Sustainability
COMFORTABLEInterest covered 5.7x — adequate buffer. Debt is manageable. Debt/EBITDA at 2.7x is moderate.
Free Cash Flow
STRONGFCF margin at 6.5% — moderate. Generating cash after investments.
Peer Comparison
Reliance Industries is compared against 10 peers in the energy sector.
Key Watchpoints
Breaks above ₹1399 (+5%)
Trend reversal confirmation
Breaks below ₹1266 (-5%)
Further downside risk
PE reverts to 5Y median of 21.6
Valuation normalization
Energy sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Elevated risk score. Review audit, board, and shareholder rights metrics.
Tight liquidity. Monitor cash position and access to credit lines.
Governance structure concerns. Independent director representation may be weak.
Profits are from core operations, not one-offs. High quality.
Modern asset base. Lower near-term capex requirements.
Collection cycle changing. Collection improving — positive for cash flow.
Growth available at reasonable price. Favourable risk-reward.
Mean recommendation: 1.3/5 (1=Strong Buy, 5=Strong Sell). Institutional confidence is high.
⚠️ 1 critical + 2 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes