Reliance Industries Limited (RIGD.L) stock analysis

In our weekly check, Reliance Industries Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 5, red flags: 4.

About Reliance Industries Limited

Reliance Industries Limited is an Energy company (Oil & Gas Refining & Marketing) based in India, listed on LSE as RIGD.L.

What our checks show for RIGD.L

Red flags

• Operating profit does not cover the interest bill (0x): interest is paid from cash or new debt.
• Analysts expect the net margin to shrink by 5.1 points from today's 7.6%.
• The dividend takes 866% of profit: little cushion if profit falls.
• The stock has fallen as much as 76% from a peak. Would you have held through that?

Warning signs

• The net margin fell by 1.1 points over 5 years, to 7.6%: the company keeps less of each sale as profit.
• Analysts expect earnings per share to shrink about 37.1% a year.
• The net margin is only 7.6%: little room if costs rise.
• Thinly traded (about 111 thousand shares a day): buying and selling can move the price.
• Return on capital (ROCE) is only 7.8%.

Strengths

• Net debt is only 1.2x a year of EBITDA: the balance sheet has room.
• The gross margin is 29.4% and has risen by 5.8 points: pricing power is holding.
• Operating cash flow is 2.38x net profit: the profit arrives as real cash.
• Earnings per share grew 69.2% a year over the last 3 years.
• A large company: market value $187 billion.
• Beta 0.65: the stock usually moves less than the market.

Similar companies

096770.KS · 010950.KS · MOL.BD · 5020.T · IOC.NS

Questions

What grade does Reliance Industries Limited (RIGD.L) have?

In our weekly check, Reliance Industries Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 5, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of RIGD.L stock?

This week's biggest flags for Reliance Industries Limited: Weak interest cover, Margins expected to shrink, Dividend stretched. In total 9 of 25 checks show a warning or a red flag.

What does Reliance Industries Limited do?

Reliance Industries Limited is an Energy company (Oil & Gas Refining & Marketing) based in India, listed on LSE as RIGD.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-11-07

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