Equity Research Report

on

Submitted by:
Submitted to: Group-6 (IAPM)
Dr. Mayank Kumar
Manohar Gupta
Yash Jalan
Kirti Dang
Krishnakant
Margesh Patel
Sanjay KV
 Business Overview

• Reliance Industry limited(RIL) is the largest private player in the refining,

petrochemical and E&P sectors in India.
• While RIL’s refining complex in Jamnagar is the largest in the world and among
the most complex, it is also among the largest integrated petrochemical
producers globally.
• RIL has made significant investments in US shale gas.
• In terms of EBIT, Refining contribute 60% and Petrochemicals 30%.
• RIL is also expanding its presence in the areas of consumer retailing and
telecom.
• EBIT contribution from retail is 2% while telecom operations have been very
successful after their launch

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Key Highlights

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 Shareholding pattern (%)

CMP 1272.75(0.8%)
As On Dec-18 Dec-17 Dec-16
BSE 500325
Promoter 46.2 46.2 45.1
NSE RELIANCEEQ
DII 11.3 11.4 12.3
ISIN INE002A01018
FII 26.2 26 24.2

16.3 16.5 18.5 FACE VALUE (RS.) 10

Others
SECTOR Refineries

#FII Includes depository receipts Market Cap Large Cap

52 Week High 1417.00
52 Week Low 941.35
SECTOR Refineries
Market Cap Large Cap

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•Stocks with improving cash flow, with good durability Institutions decreasing their shareholding
(subscription)
167.1% returns for Nifty 500 over 6.4
875.5% returns for Nifty 500 over 5.1 years
Increasing profits every quarter for the past four
years
quarters
626.2% returns for over 5.4 years
Stocks - DVM Select Long Term (subscription)
383.6% returns for Stocks on DVM Watch over 5.7
years
•Promoter shareholding increase
Strengths Weaknesses

Opportunities Threats
•High Momentum Scores (Technical Scores greater  Delay in the commissioning of key upcoming
than 50) core projects (petcoke)
•Rising Delivery Percentage Compared to Prev Day  Weak US natural gas prices could lower the
•Price crossing above SMA20 today, and greater profitability of shale gas assets
than SMA5
 Telecom business to have a ~5 year gestation,
•Stocks that Benefit from Lower Crude Oil Prices before becoming profitable

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Valuation using DCF approach
Assumptions

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Sensitivity Analysis

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Oil & Gas Valuation

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Petrochemical Valuation

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Retail Valuation

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Digital Valuation

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Relative Valuation

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THANK YOU !