Reliance Industries Upgraded to 'Hold' by MarketsMOJO, Shows Healthy Long-Term Growth

Reliance Industries, a largecap company in the oil exploration and refineries industry, has recently been upgraded to a 'Hold' by MarketsMOJO on October 14, 2024. This upgrade is based on the company's healthy long-term growth, with a net sales growth rate of 9.17% annually.
Technically, the stock is currently in a Mildly Bullish range, with an improved trend from Sideways on October 14, 2024. The RSI and KST technical factors are also Bullish, indicating positive momentum for the stock.

In terms of valuation, Reliance Industries has a fair valuation with a ROCE of 9.9 and a 2 Enterprise value to Capital Employed. It is currently trading at a discount compared to its average historical valuations. Over the past year, the stock has generated a return of 16.78%, while its profits have risen by 6.7%. The PEG ratio of the company is 1.6.

One of the key strengths of Reliance Industries is its high institutional holdings at 39.27%. These investors have better capability and resources to analyze the fundamentals of companies compared to most retail investors.

With a market cap of Rs 18,55,366 crore, Reliance Industries is the biggest company in the sector and constitutes 65.34% of the entire sector. Its annual sales of Rs 925,289.00 are 26.99% of the industry.

However, the company's results for the quarter ending June 2024 were flat, with a decline in PBT LESS OI(Q) at Rs 19,251.00 crore and PAT(Q) at Rs 15,138.00 crore, both falling by 13.0%.

In the last year, Reliance Industries has underperformed the market, generating a return of 16.78% compared to the market (BSE 500) returns of 35.61%. Overall, while the company has shown strong long-term growth potential, its recent results and market performance suggest a 'Hold' stance for now.