A Short Term to Long Term Investment Opportunity in Reliance IndHello Everyone, i hope you all will be doing good in your life and your trading as well. Today i have brought a stock which has formed a pull back and retest pattern in weekly chart stock name is Reliance Industry, it is most famous and most valuable company in india. Reliance was founded by Dhirubhai Ambani and is now promoted and managed by his elder son, Mukesh Dhirubhai Ambani. Ambani's family has about 50% shareholding in the conglomerate.
Stock is really giving good entry at this price as it has already corrected 19%, and now it is showing some strenght, There was huge volatility in market due to USA Election. Today vix has been cool almost 7% means volatility is going to reduce in market. Well if i talk about reliance i think this is giving best entry for long term investment as well as short term to medium term. For short term i already have mention the targets. But i feel it will cross these targets which i mention here and it will give 100% returns in next 2-3 years. So if anybody wants to hold this for long term can hold from these levels.
Technically and fundamentally it is very strong company there is no doubt about it. Now le't discuss about some fundaments.
Strenghts:-
Effectively using its capital to generate profit - RoCE improving in last 2 years
Growth in Net Profit with increasing Profit Margin (QoQ)
Company with Low Debt
Strong cash generating ability from core business - Improving Cash Flow from operation for last 2 years
Annual Net Profits improving for last 2 years
Company with Zero Promoter Pledge
Market Cap
₹ 17,82,145 Cr.
Current Price
₹ 1,317
High / Low
₹ 1,609 / 1,149
Stock P/E
26.2
Book Value
₹ 606
Dividend Yield
0.38 %
ROCE
9.61 %
ROE
9.25 %
Face Value
₹ 10.0
Industry PE
17.9
Debt
₹ 3,57,525 Cr.
EPS
₹ 50.2
Promoter holding
50.2 %
Intrinsic Value
₹ 523
Pledged percentage
0.00 %
EVEBITDA
11.5
Change in Prom Hold
-0.09 %
Profit Var 5Yrs
12.0 %
Sales growth 5Years
9.61 %
Return over 5years
14.7 %
Debt to equity
0.44
Net profit
₹ 77,652 Cr.
ROE 5Yr
8.73 %
Profit growth
-0.59 %
Earnings yield
6.17 %
PEG Ratio
2.19
Disclaimer:- Please always do your own analysis or consult with your financial advisor before taking any kind of trades.
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