3-Sep-2025: Reliance is currently trading around ₹1,372 with
P/E ~22.79
P/B ~2.27
EV/EBITDA ~11.4 (TTM)
Peers like BPCL, HPCL, ONGC trade much lower. So, does a “premium multiple” = stronger business?
Most investors focus on P/E. But for conglomerates like Reliance, EV/EBITDA often tells the deeper story.
EV/EBITDA in simple terms
EV/EBITDA = Enterprise Value ÷ EBITDA It shows how the market values operating earnings, regardless of debt or tax.
Why it matters for Reliance
Reliance is no longer just Oil-to-Chemicals. It’s also:
Jio (Telecom & 5G rollout)
Retail (India’s fastest-growing consumer play)
Green Energy (solar, hydrogen)
Digital ventures (AI, partnerships with Google & Meta)
Traditional P/E misses this diversified earnings mix → EV/EBITDA and SOTP provide a clearer lens.
Snapshot vs. Peers
Reliance: ~11.4× EV/EBITDA → premium, reflecting retail & digital bets
•
ExxonMobil: ~7× → cyclical O&G
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Bharti Airtel: ~9× → telecom-only
•
Walmart: ~11× → retail-focused
Where multiples can mislead
Heavy capex → pressure on free cash flows
O2C segment tied to crude swings
Leverage remains a monitorable
Technical Snapshot
Current trend: Sideways consolidation
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Support: ₹1,350.10–1,362.65
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Resistance: ₹1,384.50–1,391.95
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RSI: Neutral (~55.66) → no strong momentum yet
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Pattern: Tight range, awaiting breakout
Short-Term Perspective (1–2 weeks)
A sustained move above ₹1,406.80 could indicate strength and open room toward ₹1,430–1,440.
A slide below ₹1,350.10 may suggest weakness, with scope toward ₹1,320–1,330.
Until then, the stock may remain range-bound.
Long-Term Perspective (6–12 months):
Strategic catalysts like the Jio IPO, retail expansion, and green energy roadmap support Reliance’s premium valuation.
o
Investors tracking fundamentals may see value in gradual accumulation on dips, particularly near the ₹1,300 zone, a strong long-term support.
Takeaway
Reliance commands a premium for its diversified growth story.
Short term → consolidation; breakout levels will decide momentum.
Long term → structural growth depends on execution in digital, retail, and green energy.
Fundamentally: Is Reliance’s premium multiple justified by diversification?
Technically: Do you see this consolidation as a launchpad for breakout or a signal for caution?
