Reading Fundamentals With TradingView – Reliance EditionWhen you look at a giant like Reliance, the price chart doesn’t tell the whole story.
But TradingView has a few simple fundamentals that help you understand what the company is actually doing behind the scenes.
You don’t need finance knowledge. Just a few basic ideas.
Below is a simple way to read each metric, and what Reliance’s chart is telling us right now.
1. Total Revenue — “How much money did the company make?”
What it means:
Revenue is the total money a company earns from all its businesses.
If it goes up → the company sold more.
If it goes down → business slowed.
Good side:
Growing revenue means customers are buying more.
It usually means demand is strong.
Bad side:
Falling revenue means something is not working — maybe prices dropped, or there was less demand.
What Reliance shows:
Reliance’s revenue jumps sharply in 2022 because oil prices were high and retail was growing fast.
In 2023 it dips — global petrochem prices cooled.
By 2024–25 it stabilizes again, showing that its telecom and retail arms are balancing out the ups and downs of the oil business.
2. Free Cash Flow — “How much cash is left after paying all bills?”
What it means:
If a company earns money but spends even more, free cash flow becomes negative.
If it earns more than it spends, free cash flow is positive.
Good side:
Positive FCF means the company can expand safely and pay debt.
Bad side:
Negative FCF means the company is spending heavily — sometimes for expansion, sometimes because of trouble.
What Reliance shows:
Reliance had deep negative FCF in 2021–23.
Not because it was in trouble — but because it was building things: Jio towers, fiber, retail stores, warehouses.
By 2024–25, FCF turns strong again.
That means: “Expansion phase slowing. Collection phase starting.”
3. Long-Term Debt — “How much money did the company borrow?”
What it means:
Companies borrow when they want to build something big.
Debt rising is not always bad — it depends on what they built.
Good side:
Debt used for growth is healthy.
If the company earns more than the interest it pays, it’s fine.
Bad side:
Debt becomes risky if profits fall or the company stops growing.
What Reliance shows:
Debt fell when Reliance sold stakes in Jio and Retail (Facebook, Google, etc.).
Then debt started rising again as new projects came in.
But margins and revenue stayed stable — so this is “growth borrowing,” not “trouble borrowing.”
4. Market Cap — “What is the company worth in the market?”
What it means:
This is simply the stock price × number of shares.
It shows what investors think the whole company is worth.
Good side:
Market cap rising usually means investors believe the company has a strong future.
Bad side:
If market cap falls even when revenue rises, investors are unsure or waiting.
What Reliance shows:
Market cap went sideways for a long period — not crashing, not flying.
This usually means investors are waiting for the next big chapter (like green energy or retail listing).
5. P/E Ratio — “How much are people willing to pay for ₹1 of profit?”
What it means:
A high P/E means investors expect big growth.
A low P/E means investors are cautious.
Good side:
High P/E = people believe in the company.
Bad side:
Too high P/E = expectations are unrealistic.
What Reliance shows:
P/E around 24 means Reliance is no longer being valued like an oil company.
Oil companies usually have single-digit P/E.
This P/E shows that the market sees Reliance as multiple businesses — telecom, retail, and energy — not just oil.
6. Operating Margin — “How much profit the company keeps after running the business?”
What it means:
This shows efficiency.
Higher margin = better.
Lower margin = costs are rising or competition is tough.
Good side:
Rising margins mean the business is getting stronger.
Bad side:
Falling margins mean costs are eating into profits.
What Reliance shows:
Margins stay around 11–12%.
That’s normal for Reliance because retail has lower margins, telecom has stable margins, and oil has volatile margins.
This mix keeps margins steady, not extreme.
7. ROCE — “Is the company using its money wisely?”
What it means:
ROCE tells you how well the company turns investments into profit.
Higher ROCE = efficient use of money.
Lower ROCE = new projects still warming up.
Good side:
Rising ROCE means the business is entering a stronger phase.
Bad side:
Falling ROCE may mean too much money is stuck in early-stage projects.
What Reliance shows:
ROCE around ~9–10% means Reliance is midway — not booming, not struggling.
As retail and Jio mature further, ROCE usually goes up.
Final thoughts
When you put all these together, Reliance becomes very easy to read:
Revenue shows the size of the engine
Free Cash Flow shows how much fuel is left
Debt shows how fast they’re expanding
Market cap shows what people believe
P/E shows expectations
Margins show efficiency
ROCE shows long-term strength
None of this is complicated.
TradingView already gives you everything — you just need to see each line for what it is.
Disclaimer
This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.
