Information About Reliance Industries Ltd Stock Price

Reliance Industries Limited is headquartered in Mumbai, India. The company has several businesses across the country which primarily deal in hydrocarbon production and exploration, petrochemical refining and marketing, textiles, mass media, retail, and telecommunications. RIL has been around for more than 40 years, and in that time, it has spread to become one of the most profitable companies across India. As of 2017, the company is listed on the Fortune Global 500. It is also the largest exporter in India, and responsible for 8% of the country's total merchandise exports.

History of the Reliance Industries:

Back in the 1960s, Dhirubhai Ambani co-founded the company with his brother, Ramnikbhai Ambani, as Reliance Commercial Corporation or RCC. It started out as a yarn trading business but soon expanded into the textile business, with Vimal eventually becoming a leading brand in the later years. In 1977, the company generated equity trend in India through its initial public offer (IPO). The IPO has been oversubscribed seven times. As the years passed, the company, now known as RIL, diversified in other sectors such as energy and telecom. The late 90s witnessed the construction of Jamnagar Refinery - the world's largest crude oil refinery.

In early 2000, Reliance Industries Limited and Reliance Petroleum Limited were merged, subsequently by the discovery of gas in the Krishna Godavari Basin. Shortly after this discovery, RIL bought a majority stake in Indian Petrochemical Corporation Limited, which was later merged with the company.

After establishing a strong foothold in the energy sector, Reliance expanded on to retail, mass media and telecommunications, as seen today.

Company Management:

Mukesh Dhirubhai Ambani - Chairman and MD

Mukesh D. Ambani is the chairman, MD and the largest shareholder of RIL, and has been a member of the board since 1977. He is responsible for leading the development of the Jamnagar Refinery along with several state-of-the-art manufacturing facilities, which have amplified Reliance's petrochemicals manufacturing abilities. He also led the development, implementation, and expansion of infrastructure facilities and supply chain network in the retail sector. His efforts helped Reliance become a leading name in the retail segment. Furthermore, he has launched Reliance Jio, which became one of the most popular networks across India in a short span.

Mr. Mukesh Ambani did Chemical Engineering from the Institute of Chemical Technology, Mumbai, along with an MBA from Stanford University, U.S.A. He has received several honors including Economic Times Business Leader of the Year, 2017, 'Entrepreneur of the Decade' - All India Management Association in 2013, and many more.

Wealth and Recent Performance:

Reliance has recorded strong numbers in consolidated results of its third quarter in FY18. The income for the Q3 was said to be at Rs.1,09,905 crore - increased by 8.6% over the last quarter and by 30.5% over the third quarter of FY17.

Similarly, EBIT (Earnings before interest and taxes) for the quarter was Rs.13,789 crore. This is a 14.5% increase over the last quarter and 44.8% increase over 3Q FY17. Correspondingly, the net profit for the same term was Rs.9,423 crore.

Retail segment, Jio, and petrochemicals were the profit drivers for the third quarter. EBIT for petrochemicals was a little over Rs.5,500 crore, while for Jio, it was at Rs.1,440 crore. This impressive growth came in Jio's second quarter of commercial operations, wherein its gross revenue increased by 12.7% over the last quarter.

Furthermore, revenue for the retail segment increased dramatically to Rs.18,798 crore from Rs.8,688 crore in Q3 FY17. Operating profit before other income and depreciation also increased during the same quarter by 52% to a Rs.17,588 crore. Similarly, Earnings per Share (EPS) for this quarter has also increased by 25.2% concerning 3Q FY17, to Rs.16.

Why Invest in Reliance Industries Limited?

Reliance Industries is a profit-driven business enterprise. Along with making profits in refining & marketing, and petrochemicals segments over the years, the conglomerate has also begun steady earnings in the organized retail sector. In this segment, 100% achievement in revenue for the last one year is the evidence of Reliance's rapid expansion.

Similarly, Reliance Jio has also seen tremendous growth since its launch in 2016. The customer base of Reliance Jio is rapidly increasing owing to their high-value plans. It is one of the fastest growing digital services entity in the country because Jio hasn't been on the block for that long. More investment can be expected in this segment in the coming years.

At the same time, it is important to note that refining, petrochemicals, and oil-related activities still build the core of the business for Reliance. Though it is true that the company generate revenues from other segments like retail,media, and telecom, a massive chunk of its overall revenue is still produced by the oil segment.

RIL stock presents itself as a viable investment option. Reliance is considered to be a growth company, and many experts have a positive outlook on the company's profits in the next few years. However, it is advisable that you carry out your research before investing in the company.

Stocks or Mutual Funds: Here is our recommendation

A lot of research and knowledge is required in stock market investments, and generally, they don't offer any tax benefits. Hence at mymoneykarma, we merely motivate our readers to invest in mutual funds. Investing in mutual funds doesn't require a lot of knowledge, and equity-linked mutual fund schemes also provide tax benefits. In addition to it, since mutual funds contain stocks from multiple companies, they help in building a diversified portfolio.

Note: The contents of this post/blog do not constitute any professional advice on a specific financial matter.

Indexes and Exchages

Bombay Stock Exchange (BSE)

The Bombay Stock Exchange, more popular as BSE, is the first and oldest stock exchange in Asia. Premchand Roychand, an influential stockbroker and businessman, ventured into this ambitious journey in 1855 with around 20 associates. They organized meetings at several outdoor locations before finally finding a permanent place in Mumbai’s Dalal Street. BSE was thus formally established in 1875. The exchange chiefly facilitated floor trading for a century before adopting an automated digital platform in 1995. The company has grown enormously ever since and has joined the United Nations Sustainable Stock Exchange as a partner exchange in 2012. BSE has also opened India's first international exchange, known as INX, in 2016.

National Stock Exchange (NSE)

NSE was mainly a Government of India initiative that aspired to bring transparency to the Indian capital market. A group of leading Indian financial institutions, upon the government's instruction, joined their resources to set up the exchange. Established in 1992, NSE was the first demutualized electronic exchange of India. It was the first exchange in India that operated on an entirely automated, digital screen-based electronic trading system. The platform offered an easy trading facility and connected the investor base of the entire country. NSE has immensely expanded ever since and currently extends its services to various segments, such as equity derivatives, trading, debt and currency derivatives, clearing and settlement services in equity, etc.

NIFTY Index

Launched on 1st April 1996, the NIFTY is NSE's flagship index that helps investment managers in tracking the behavior of a portfolio of certain companies. The list includes 50 companies from 12 different sectors out of the 1600 companies registered under the NSE. These are the 50 blue-chip companies owning the largest and most liquid Indian securities. Therefore, it is popularly referred to as the Nifty 50 and the index symbolizes the weighted average of the stock value of these 50 companies. The Nifty exposes investors to the Indian market through one efficient portfolio. The IISL or India Index Services and Products is a specialized company that focuses on an index as a core product and it owns as well as manages the Nifty.

SENSEX Index

Just like NSE's Nifty 50, BSE's stock market index is called Sensex. The word 'Sensex' is a combination of the words 'Sensitive' and 'Index.' It is also known by the names of BSE 30 and S&P BSE SENSEX. It comprises of 30 well-established and financially thriving companies among the ones listed on BSE. These 30 companies represent diverse industrial sectors of the Indian economy and have the largest as well as most actively traded stocks. SENSEX is extensively reported in national and international markets, through both print and electronic media. It has a scientifically designed indexing system which is based on internationally accepted construction and review methodologies. Since September 2003, a free-float market capitalization methodology is applied to calculate Sensex.