At a Glance
Reliance Industries is no longer just an oil-to-telecom giant — it’s a slow, massive cruise ship with ₹964,000 Cr revenue, ₹81,000 Cr profit, and the Ambani stamp on everything from crude to cricket. But with low ROE, sluggish stock price, and billions in capex every year, is India’s most valuable company… kinda dull now?
1️⃣ Mukeshbhai’s Empire: From Crude to Cloud
- Oil-to-Chemicals (O2C): Still king at 57% of revenue. Massive 77 MMT throughput, 1.4M barrels/day capacity — Jamnagar refinery is literally the largest single-site refinery on Earth.
- Retail: Kirana meet Amazon. ₹3.1 lakh Cr revenue in FY25. Grocery, fashion, pharma — all covered.
- Jio & Digital: India’s #1 telco. 480 million+ users. Oh, and JioCinema just casually stole IPL from Disney+Hotstar.
- New Energy: ₹75,000 Cr committed. Solar gigafactories, hydrogen dreams, battery tech. Execution? Still loading…
🎯 Conclusion: Reliance is a conglomerate with range. But range ≠ returns.
2️⃣ 5-Year Financial Recap: Solid, But Not Sexy
| Metric | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|
| Sales (₹ Cr) | 5,96,679 | 4,66,307 | 6,94,673 | 8,76,396 | 8,99,041 | 9,64,693 |
| Net Profit (₹ Cr) | 39,880 | 53,739 | 67,845 | 74,088 | 79,020 | 81,309 |
| Operating Margin | 15% | 17% | 16% | 16% | 18% | 17% |
| ROCE | 11% | 8% | 8% | 9% | 10% | 9% |
| ROE | 8.5% avg | Meh. | ||||
| Debt (₹ Cr) | ₹3.55 Lakh Cr (FY20) → ₹3.69 Lakh Cr (FY25) | 💣 |
🧾 Key Insight: Profit grew ~2x in 5 years, but stock rose just ~13% CAGR. Why? Because ROE is just 9%, and capex gobbles up free cash.
3️⃣ Capex King or Cash Sink?
- ₹1.09 Lakh Cr in Fixed Assets added in FY25 alone
- ₹1.78 Lakh Cr from operations in FY25
- But spent ₹1.37 Lakh Cr on investing, and still raised debt 🏦
- CWIP (Work in Progress) fell from ₹3.38L Cr → ₹1.69L Cr (finally completing old projects)
⚠️ Verdict: Capex is now moving from “future promise” to “let’s see the return” territory.
4️⃣ Shareholding: FIIs Bailing?
| Holder Type | FY23 | FY25 |
|---|---|---|
| Promoter | 50.41% | 50.10% ✅ Stable |
| FIIs | 22.49% | 19.07% ❌ Outflows |
| DIIs | 16.06% | 19.36% ✅ Increasing |
🚨 Foreign investors are losing patience. Domestic ones are picking up the slack. Probably hoping Jio Financial or Green Energy will become the next multi-bagger.
5️⃣ What’s Hot: Latest Moves
🖊️ June 2025:
- Reliance sold 1.2% stake in Asian Paints worth ₹2,600 Cr
- Voluntary liquidation of REC Solar Japan
- Investor meet with Goldman Sachs (no UPSI disclosed, relax SEBI 😅)
🔋 Green Plans:
- Capex still flowing into solar, hydrogen, battery storage
- Yet-to-launch New Energy IPO teased for FY26?
📱 Jio Financial Services quietly building a retail lending + wealth play. Watch out Paytm, this one has Mukesh’s blessings and IRDA/RBI licenses.
6️⃣ Valuation: Is Reliance Overvalued?
| Metric | Value |
|---|---|
| CMP | ₹1,451 |
| Market Cap | ₹19.6 Lakh Cr |
| P/E | 28.2x |
| Book Value | ₹623 |
| P/B | ~2.3x |
| Dividend Yield | 0.34% |
| FV Range (EduEstimate) | ₹1,200 – ₹1,550 |
🧮 Valuation Logic:
- Historical P/E avg = ~25x
- 3Y EPS CAGR = 6%
- Forward EPS (FY26 est.): ~₹55
- Conservative FV = 25x × ₹55 = ₹1,375
- Upper bound (Jio/Green optionality): 28x × ₹55 = ₹1,540
So unless FY26 surprises on margin expansion, it’s more likely to consolidate than shoot up.
7️⃣ TL;DR — Reliance Right Now
- ✅ ₹81,000 Cr annual profit. Rock solid.
- ✅ Green energy, retail, telecom = growth bets
- ❌ ROE still at 9% despite massive empire
- ❌ Stock up just 1% YoY
- 🧘♂️ Market is saying: “Great company. Price meh.”
- 🤹♂️ Mukesh is juggling energy, telco, retail, OTT, finance — but which one will really drive returns?
⚖️ Final Thought
Owning Reliance is like owning an index. It’ll never double in a year, but it’ll probably never go bankrupt either. A boringly brilliant ₹20 lakh crore juggernaut. Just don’t expect fireworks.
✍️ Written by Prashant | 📅 June 24, 2025
Tags: Reliance Industries, Mukesh Ambani, Jio Financial, Green Energy, Asian Paints Stake Sale, O2C, Reliance Stock Analysis, PSU vs Private, Conglomerate Valuation, India Inc
