Reliance Industries shares

Thinking about investing in Reliance Industries? Find out everything you need to know about the stock’s variations, risks and investment opportunities.

Reliance Industries Limited-RIL is the second fastest growing company in India after the oil giant Indian Oil Corporation. It is also ranked 114th on the list of the world's largest companies in the Fortune global 500 - 2014. 

Is the company’s positive image reason enough to invest in its shares? Can investing in Reliance Industries stock pay off? Without knowing the company, investing blindly can be risky. This guide gives you the information you need to help you make the right decision.

Introduction to the stock

History of Reliance Industries 

Reliance Industries is a privately held Indian company that was founded in 1966 by Dhirubhai Ambani. The original name of the company was Reliance Commercial Corporation. Following the death of Dhirubhai Ambani in 2002, the Reliance Commercial Corporation group of companies and subsidiaries was split in two by his two sons. 

This is how Reliance Industries was born. It is currently headed by one of the founder's sons, Mukesh Ambani, who has been appointed Chairman and Managing Director. The other part of Reliance Commercial Corporation is managed by Mukesh's brother.

Reliance Industries is a group of companies whose main subsidiaries are :

  • Jamnagar Refinery
  • Reliance Life Sciences, which specializes in biotechnology 
  • Reliance Industrial Infrastructure Limited, a company specialized in the construction and installation of pipelines
  • Reliance Retail, a retail and mass distribution specialist
  • Reliance Jio Infocomm, a telecom operator
  • Network 18, Jio and Reliance Industries USA.

Reliance Industries' business lines

Reliance Industries is part of one of the world's largest and most powerful polyester producers - the petrochemical industry. Reliance Industries’ business lines can be summarized as follows: oil exploration, oil exploitation and production, refining and marketing of petroleum products, production, sale and distribution of petroleum products, telecommunications and large-scale distribution.

Why invest in Reliance Industries stock ?

Careful analysis of the context and the group's financial data can help in the decision making process:

The oil sector is still relevant 

The exploitation of oil and the production of petroleum products are still today an essential sector for the world economy. No sustainable and cheaper alternative to oil has been found. This sector is therefore a promising investment field for the moment, despite the economic slowdown due to Covid-19 in 2020.

Reliance Industries' financial and stock market situation 

The petrochemical industry Reliance Industries is in good shape financially despite a slight setback in 2020 due to the health crisis. 2021 promises to be a good year for the industry to revive.

The stock price as of March 31 is $55.2 with slight variations over the past five days. Reliance Industries' financial forecast for 2021 and 2022 is as follows:

  • Revenues : fifty-nine billion euros in 2021 and 76 billion euros in 2022
  • Net income : five billion euros in 2021 versus 7 billion euros in 2022
  • Cash position : 4 billion euros of net debt in 2021 versus 1.5 billion euros of net cash in 2022
  • Rate of return : forecast +0.35% in 2021 and +0.39% in 2021