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Investors Guide To Ril: By: Miss - Pallavi Akole Roll No: 02

Reliance Industries Limited (RIL) is India's largest private sector company. It was founded by Dhirubhai Ambani and is now chaired by Mukesh Ambani. RIL's core businesses include oil and gas exploration and production, petroleum refining and marketing, petrochemicals, textiles, and retail. Some of RIL's major brands include Reliance Gas, Reliance Aviation, Repol, Reliance Fresh, and Reliance Digital. RIL has achieved significant growth and vertical integration across its businesses. It reported revenues of $44 billion and EBITDA of $7.4 billion for fiscal year 2009-2010. RIL is well positioned for future

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272 views

Investors Guide To Ril: By: Miss - Pallavi Akole Roll No: 02

Reliance Industries Limited (RIL) is India's largest private sector company. It was founded by Dhirubhai Ambani and is now chaired by Mukesh Ambani. RIL's core businesses include oil and gas exploration and production, petroleum refining and marketing, petrochemicals, textiles, and retail. Some of RIL's major brands include Reliance Gas, Reliance Aviation, Repol, Reliance Fresh, and Reliance Digital. RIL has achieved significant growth and vertical integration across its businesses. It reported revenues of $44 billion and EBITDA of $7.4 billion for fiscal year 2009-2010. RIL is well positioned for future

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miteshpath
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© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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INVESTORS GUIDE TO RIL

By :
Miss –Pallavi Akole
Roll No : 02
Dhirubhai H. Ambani Shri Mukesh D. Ambani
Founder Chairman Reliance Group Chairman & Managing Director
December 28, 1932 - July 6, 2002
COMPANY PROFILE
 The flagship company, Reliance Industries Limited, is a
Fortune Global 500 company .
 The largest private sector company in India

 Started with textiles in the late seventies

 Backward vertical integration has been the cornerstone


of the evolution and growth of Reliance.
 The Group's activities span exploration and production
of oil and gas, petroleum refining and marketing,
petrochemicals (polyester, fibre intermediates, plastics
and chemicals), textiles, retail .
THE GROUP'S ACTIVITIES SPAN
 Exploration and production of oil and gas
 Petroleum refining and Marketing Brand – Reliance
Gas and Reliance Aviation
 Petrochemicals (polyester, fibre intermediates, plastics
and chemicals)
Brands – Repol,Relen ,Reon,Relab etc
 Textiles Brands - Vimal

 Retail Brands – Reliance fresh,Reliance Super,Reliance


digital,iStore,Reliance trends
EBIT
Revenue in %

Others petrochem Oil & Gas Refineries

others Petrochem Oil & Gas Refineries


RIL’S VALUE CREATION JOURNEY
 Ability to identify and pursue high-growth, global
businesses
 Superior execution capabilities in setting up world-class,
large scale projects completed in record time and at
competitive capital costs
 Global competitiveness and leadership position in
businesses Integration across the value chain
 Financial conservatism

 Creating a sustainable organisation


FINANCIAL HIGHLIGHTS
 Revenue of $ 44 billion
 EBITDA of over $ 7.4 billion

 Industry leading position across Businesses

 Strong existing cash flows

 Solid Balance Sheet

Net worth of $ 30.5 billion


Conservative net gearing of 22.3%
 Total Assets grew to $56 billion
COMPETITORS
 IOC
 BPCL

 HPCL

 ESSAR OIL

 MRPL

 Chennai Petro
STRATEGIC RATIONALE
 Significant new value creation platform for Reliance -
potential acquisition of gas resources
 Participation in the fast growing resource base of shale
gas in North America
 Partnerships with experienced and successful operators

 Leveraging existing development expertise and risk


appetite
Financial Highlights For The 3 Years Rs. In Crore

   
  2007-08
2009-2010 2008-09

Turnover 200,400 146,328 139,269


Total Income 202,860 148,388 144,898

Earnings Before Depreciation, Interest and Tax (EBDIT) 33,041 25,374 28,935
Depreciation 10,497 5,195 4,847
Exceptional Items   -370 4,733
Profit After Tax 16,236 15,309 19,458
Equity Dividend % 70 130 130
Dividend Payout 2,084 1,897 1,631
Equity Share Capital 3,270 1,574 1,454

Equity Share Suspense Account   69 -

Equity Share Warrants   - 1,682


Reserves and Surplus 133,901 124,730 78,313
Net Worth 137,171 126,373 81,449
Gross Fixed Assets 228,004 218,673 127,235
Net Fixed Assets 165399 169,387 84,889
Total Assets 251,006 245,706 149,792
Market Capitalisation 351,320 239,721 329,179
HIGHLIGHTS
 Demand for key products across the value chain
 All facilities working at safe and near peak performance

 Strong balance sheet with high liquidity to drive future


growth
 Significant expansion planned across the petrochemical
chain Ex. Acquisition of Shale Gas
FUNDAMENTAL TRIATES
2009-10 2008-09
Key Indicators

Earnings Per Share - Rs. 49.7 98.8

Turnover Per Share - Rs. 612.9 924.9

Book Value Per Share - Rs. 419.5 798.7

Debt : Equity Ratio 046:1 0.63:1

EBDIT / Gross Turnover % 16.5 17.3

Net Profit Margin % 8.1 10.5


RONW %* 16.4 21.6
ROCE %* 13.9 20.3
VITAL FINANCIAL RATIOS
 Net Profit Ratio : 8:1 - Profitability
 Net profit Margin % : 8.35

 P/E Ratio : 9.68:1 – Investors estimate of future

 Dividend payout Ratio : 14.97 % - % earnings


distributed
 Earning yield : 10.32% - Market Acceptability

 Declared 1:1 BONUS ISSUES


INVESTMENT HIGHLIGHTS

 Emerging Growth Company in Large and Growing Market


 Strong and Broad Operating Platform
 Significant Growth Drivers
 Strategic Partnerships
 Stable and Recurring Revenue Base
 Cash-efficient Model
 Strong, Committed Management Team
TECHNICAL ANALYSIS ON RIL
Attribute Value Date

PE ratio 19.13 o9/09/10

EPS (Rs) 49.65 Mar, 10


Sales (Rs crore) 58,228.00 Jun, 10
Face Value (Rs) 10  

Net profit margin (%) 8.35 Mar, 10


Last bonus 1:1 07/10/09
Last dividend (%) 70 26/04/10

Return on average equity 12.64 Mar, 10


MOVING AVERAGES OF RIL

DAYS 3 9 12 26
MOVING 957 969 970 995
AVERAGE

MACD Of RIL
MACD 9-VS-12 DAYS 9-vs-26 DAYS 12-vs-26 days
-1.65 -26.78 -24.17
CONCLUSION ON RIL
BULLISH TGT-971 SL-950 CMP-957.95
BEARISH TGT-939 SL-971 CMP-957.95

Reliance has given kind of a bounce back after getting quite oversold.
It can now touch levels of around Rs 970.
Once the stock manages to sustain levels of Rs 970 it will be very likely to test
levels of around Rs 1040-1050.

** NOTE:- TGT- TARGET PRICE, SL-STOP LOSS, CMP- CURRENT MARKET


PRICE
CONCLUTION
 There could be a good trading bet in long term.
THANK YOU

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