Equity Research and Fundamental Analysis of Reliance Industries Limited: Financial Performance, DCF Valuation and Portfolio Relevance for the ABSLI Maximizer ULIP Fund
Year: 2026
Type: article
Abstract: The study evaluates Reliance Industries Limited (RIL) using fundamental equity-research techniques and examines the relevance of the company as a core blue-chip holding in the ABSLI Maximizer ULIP Fund. The research problem arises from the need to assess a diversified conglomerate whose businesses differ materially in growth drivers, capital intensity, risk and cash-flow characteristics. Four objectives were addressed: analysis of five-year financial performance and ratios; construction of an FCFF-based DCF valuation; assessment of RIL’s strategic portfolio relevance; and application of practical wealth-management workflows such as goal discovery, risk profiling and consultative product communication. The study uses a descriptive and analytical research design, a purposive single-company case-study approach, and secondary data from RIL financial statements, investor disclosures, regulatory sources and financial databases. Analysis covers FY2022–FY2026, with DCF projections through FY2031. Results show revenue CAGR of approximately 10.6%, PAT CAGR of about 9.0%, OCF CAGR of about 14.8%, improving ROE and ROCE, moderate leverage and strong cash generation. The base-case DCF estimates intrinsic value at about ₹1,080 per share versus an assumed market price of ₹1,275.90, implying approximately 15.3% downside. The study therefore concludes that RIL has strong fundamentals but requires valuation discipline and continuous monitoring of capital allocation, cash flows and emerging businesses.
Authors: Arpit Rajesh Bachale, Dr. Sanjay Asati
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W7225627697