RESEARCH REPORT ON :- RELIANCE INDUSTRIES LTD. Founder: Dhirubhai Ambani Founded: 8 May 1973 Headquarters: Mumbai Revenue: 6,59,205 cr. Number of employees: 195,618 Date of report -4 NOV 2020 About Reliance Industries Ltd. Reliance Industries Ltd. engages in hydrocarbon exploration and Mr. Abhijeet Senger production, petroleum refining and marketing, petrochemicals, retail, and Research Analyst telecommunications. It operates through the following business segments: Refining, Petrochemicals, Oil and Gas, Organised Retail, Digital Services, CMP INR: 1900 and Others. The Refining segment includes the production and marketing RATING: Buy operations of the petroleum products. The Petrochemicals segment refers to the manufacture and marketing operations of petrochemical products. 1ST TARGET : 2100 Oil and Gas segment consists 2ND TARGET : 2300 of exploration, development and production of crude oil and natural gas. The Organised Retail segment comprises of organized retail business. The SL : 1700 Digital Services segment refers to provision of digital services. The Others segment engages in Media, SEZ development, and textile business. COMPANY OVERVIEW Market cap 204509.71cr. Reliance Industries Ltd., incorporated in the year 1973, is a Large Cap Face value(rs) 1.00 company (having a market cap of Rs 1263621.97 Crore) operating in P/E ratio 14.3 Diversified sector.Reliance Industries Ltd. key Products/Revenue Segments Book value 50.39 include Refinery which contributed Rs 234687.00 Crore to Sales Value (66.88 % of Total Sales), Petrochemicals which contributed Rs 112726.00 52 week high 266.30 Crore to Sales Value (32.12 % of Total Sales), Other Services which 52 week low 134.60 Return on 25.0% contributed Rs 1236.00 Crore to Sales Value (0.35 % of Total Sales), Oil & Gas which contributed Rs 1093.00 Crore to Sales Value (0.31 % of Total Equity(ROE) Sales), Income From Financial Services which contributed Rs 616.00 Crore to Sales Value (0.17 % of Total Sales), Others which contributed Rs 522.00 Crore to Sales Value (0.14 % of Total Sales)for the year ending 31-Mar-2020. Reliance Industries Ltd. Owned By Mutual Fund Last 6 Quarters Sep 20 June 20 No. of shares No. of shares Total 219,794,023 200,752,037 Note:- For schemes that have not disclosed the number of shares, the same has been calculated on the basis of the closing price of the stock on the BSE/NSE as on the portfolio date. The increase/decrease in the share quantity besides the fund buying or selling the shares from the market, could also be due to any bonus, split, rights, or restructuring in the company. Financial Highlights Of Reliance Industries Ltd. Financial highlights refers to a section appearing in an EOD Close 1850.40 annual report that includes a multi-year comparison of operating and business metrics. Financial highlights are EBITDA 81144.00 often times the first section appearing in an annual report, Profit Margin 0.083 providing investors with an at-a-glance view of the company's recent performance. Qtr Revenue growth -0.189 YOY The information contained in an annual report is normally Qtr Earning Growth -0.210 audited by the company's accounting firm and includes YOY financial highlights, a Chairperson's Letter as well as the Revenue TTM 491.07k Form 10-K. The financial highlights section of the report Revenue Per Share TTM 187.22k usually contains performance over the last several years in addition to the percentage change in each metric over time. Gross Profit TTM 771.18 Enterprise Value 264.81k Outstanding Shares 676.20 Consensus Target 1268.86 Key Ratios Of Reliance Industries Ltd. Put/Call ratio (PCR) is a popular derivative indicator, Earning /Share 69.69 specifically designed to help traders gauge the overall Diluted EPS TTM 63.69 sentiment (mood) of the market. The ratio is calculated PE Ratio 33.13 either on the basis of options trading volumes or on the basis Div / Share 6.50 of the open interest for a particular period. If the ratio is Div Yield % 0.320 more than 1, it means that more puts have been traded during the day and if it is less than 1, it means more calls PEG Ratio 0 have been traded. The PCR can be calculated for the options Trailing PE 33.13 segment as a whole, which includes individual stocks as well Forward PE 29.85 as indices. Price Sales TTM 2.67 Price Book MRQ 3.29 Put/call ratio Interpretation If put-call ratio increases Bullish Indication. It Enterprise Value / Revenue 23.14 as minor dips getting means the put writers Enterprise Value / EBITDA 3.26 bought in during an up are aggressively writing trending market at dips expecting the Return on Asset TTM 0.0320 uptrend to continue Return on Equity TTM 0.087 If put-call ratio Bearish Indication. It decreases while markets means call writers are testing the resistance building fresh positions, levels expecting a limited upside or a correction in the market. 80 69.69 70 63.69 60 50 40 33.13 33.13 29.85 30 23.14 20 6.5 10 0.32 0 2.67 3.29 3.26 0.032 0.087 0 Futures Of Reliance Industries Ltd. RIL is in late-stage talks with Kishore Biyani-led Future Closing Price 1858.65 Group to buy a controlling stake in its retail business, according to reports. The companies have supposedly Premium/Discount 8.25 reached a common accord regarding certain terms and conditions and a deal is likely to be announced soon. Price Change -23.75 RIL might acquire Kishore Biyani-controlled Future Group's retail business for Rs 24,000-27,000 crore. RIL Change % -1.26 will also absorb Future Group's partnerships with foreign brands and retailers. The deal will make RIL the Future OI 40096.50k number one player in brick-and-mortar space in India across categories such as fashion, groceries, and OI Change % 0.878 merchandise. Future Contracts 93.03k For the quarter ended 30-09-2020, the company has reported a Consolidated sales of Rs 116195.00 Crore, up Contracts Change -22.70 31.66 % from last quarter Sales of Rs 88253.00 Crore and down -21.77 % from last year same quarter Sales of Rs Lot Size 505 148526.00 Crore Company has reported net profit after tax of Rs 10497.00 Crore in latest quarter. 45000 40096.5 40000 35000 30000 25000 20000 15000 10000 1858.65 5000 8.25 0.878 93.03 505 0 -5000 -23.75 -1.26 -22.7 Put/Call Option Maximum Call writing has been for strikes: 2100 2000 Call Max Traded Strike Price 2000.00 2200 2300. Until yesterday Maximum Call writing has been for strikes: 2100 2000 2200 2300. Call Max Traded SP Contracts 27063 Open Interest of Call writers for the options of Reliance Call Option Open Interest 36463.52k Industries Limited RELIANCE is shifting downwards. This would mean that markets are slowly moving downwards, Call Option OI Chg % 7.37 and buying CALLS and CE might not be profitable. Maximum Put writing has been for strikes: 1800 1900 2000 Put Max Traded Strike Price 1800.00 1700Until yesterday Maximum Put writing has been for strikes: 1800 1900 2000 1700 Put Max Traded SP Contracts 15599 Open Interest of PUT writers for the options of Reliance Put Option Open Interest 17393.72k Industries Limited RELIANCE is shifting downwards. This would mean that markets are slowly moving downwards, Put Option OI Chg % 11.40 and buying PUTS and PE might be more profitable. However, above mentioned levels will serve as support so avoid buying PE below those above mentioned levels. 40000 36463.52 35000 30000 27063 25000 20000 17393.72 15599 15000 10000 5000 2000 1800 7.37 11.4 0 Call Max Call Max Call Option Call Option OI Put Max Put Max Put Option Put Option OI Traded Strike Traded SP Open Interest Chg % Traded Strike Traded SP Open Interest Chg % Price Contracts Price Contracts Put/Call Ratio- 26/11/2020 Put/Call ratio (PCR) is a popular derivative indicator, Put Open Interest 17393.72k specifically designed to help traders gauge the overall sentiment (mood) of the market. The ratio is calculated either on the basis of options trading volumes or on the Call Open Interest 36463.52k basis of the open interest for a particular period. If the ratio is more than 1, it means that more puts have been PCR Open Interest 0.477 traded during the day and if it is less than 1, it means more calls have been traded. The PCR can be calculated for the options segment as a whole, which includes PCR OI Reading Bullish individual stocks as well as indices. Put Contracts Traded 84848.00 Put/Call ratio is an important tool used by traders to gauge the overall sentiment of the market. Put/call ratio help traders decide the price movement of an Call Contracts Traded 147337.00 underlying security and guides them to place directional bets on the stocks. Being a contrarian PCR Volume 0.576 indicator, it helps traders not to get trapped with Herd Mentality. As the ratio is calculated both in terms of open interest and volume, the entire trading behaviour PCR Vol Reading Bullish of market participants can be analysed using the Put/call ratio. 160000 147337 140000 120000 100000 84848 80000 60000 36463.52 40000 17393.72 20000 0.477 0 0.576 0 0 Put Open Call Open PCR Open PCR OI Put Contracts Call PCR Volume PCR Vol Interest Interest Interest Reading Traded Contracts Reading Traded Daily Candlestick Chart Patterns Bullish gap up Candlestick pattern was formed by Reliance Industries Ltd.