RELIANCE INDUSTRIES LTD Valuation

RELIANCE · Oil Gas & Consumable Fuels · Current price ₹1,327.2

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DocStoX fair value
₹623
low confidence
Current price
₹1,327
Upside
-53.1%
P/E ratio
22.2x
P/B ratio
2.0x
Verdict
Avoid
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Is RELIANCE INDUSTRIES LTD undervalued?

DocStoX estimates the fair value of RELIANCE INDUSTRIES LTD at ₹623 per share, versus the current market price of ₹1,327. That puts the stock about -53.1% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹628), Relative P/E (₹325), Graham floor (₹947). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹325 (bear) to ₹623 (base) to ₹947 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

RELIANCE INDUSTRIES LTD trades at a P/E of 22.2x and a P/B of 2.0x, with a dividend yield of 0.5%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on RELIANCE INDUSTRIES LTD

DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.