very few companies impact each and every person
at such a scale in a country like India one such company is reliance hello everyone thanks for
joining we'll look at Reliance from fundamental and Technical aspects and deep dive into the
annual report also when we say about Reliance it is one of the biggest value creators
of India and a Fortune 500 company also so if you look at the market cap it is at it it
is at 17 lakh 81 000 crore uh presently it is at 15 lakh 89 000 crores the revenue st
ands at 8 lakh
92 000 crores and the profit is at 67 000 crores so when we say one of the biggest contributors
to economic growth then the value of export is a striking thing it uh it is contributing seven
percent of India's export also if we look at the national exchanger contribution that is at one
lakh 88 000 crores so the scale at which Reliance the top Reliance is operating is huge now how
is reliance connected to each and every India so if we look at the different businesses one
is o
il to chemicals another is retail space third is media and entertainment and next is
Digital Services so from oil to chemicals we can we know that fossil fuels petrol and Diesel are
used from retail daily household needs and other products from media and entertainment media
and Digital Services basically connectivity so if we look at the revenue contribution oil
to chemical is contributing 56.8 percent retail is contributing 22.7 percent and Digital
Services is contributing 11.64 percent so
at if you look at each and every uh
business uh Digital Services is a standout performer over here which is having a great
margin we can see it is operating at 47.3 percent of ubita margins so that is a very good
contributor to the overall cash flows we can see if we compare the ebitda of Digital Services and
oil to chemical business we can clearly see the revenue is for all two chemicals is five lakh
crores but ebitda is fifty two thousand whereas for Digital Services the value uh the rev
enue is
around one lakh crores but divita is giving 40 000 crores so the uh cash flow which Digital
Services brings into the company that is huge also if we look at the second biggest contributor
that is at retail retail business it is at two lakh two lakh crores but then the margin at which
it operates is very low that is at 7.1 percent whereas for uh media and entertainment the
margins are 18.4 percent but the scale is very low compared to the other businesses uh if we discuss
from the D
igital Services point of view uh we can clearly see uh how Reliance has invested in few
of the startups and this is this list is uh from the annual report itself here they have mentioned
around 15 startups they have invested and look at the names eight of those are AI startups now look
at the value it will unlock once these startups uh go if if any of these turn out to be unicorns then
the value it will bring to the uh 4A will be great also we should not forget that two years back
Google an
d Facebook had invested with other investors also were in Reliance was able to raise
around one lakh 52 000 crores for the debt which it had accumulated now when we look at the uh
retail space basically it is it is having four businesses one of it is grocery which is run by
Reliance fresh basically second is uh the Consumer Electronics space it is uh through Reliance
Digital and jio Digital Life they are operating then third is the fashion and lifestyle
space wherein Reliance Trends Relianc
e Jewels is also playing an important role and
fourth is the Pharma space with the net meds acquisition they are able to uh foray into this
space other than this retail space they have uh increased their stake in Just Dial Ritu
Kumar Manish Malhotra and other big brands and for oil two chemicals basically you can
say the transportation fuels and other Allied products which are produced from the crude oil so
this is a big space but I'll not deep dive into each and everything just to show how
the scale
is I've shown this slide now let's look at the technical points of the stock so if we look
at the present market cap it is at 15 lakh 89 000 crore the peers is at 23.8 Which is
higher uh than the average PE for Nifty 50. uh one bad point we can say is the debt which is
at 0.41 so 3 lakh 35 000 crores is the total debt uh other than that the promoters holding
is a good thing which is at 50.4 percent if we look at the shareholding pattern then
we can see LIC has increased increase
d its stake from 5.9 to 6.6 percent and
also SBI mutual funds from 1.45 to around two percent so two big players
have are already invested in reliance when we look at the market cap it has
steadily grown since last four or five years and especially after 2019 it has given good
returns foreign now if we look at the stock price one thing is sure for seven years there was no
growth in the stock from 2011 to 2000 mid of 2017. so if we consider the present price level of
2350 I think so it is a
good time to buy in this company considering long term point of
view of five or seven years before investing please consult your investment advisor also please
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