Case study

RELIANCE

Reliance

Mixed signals1y model -6.3%

Each stock's 10,000-path forecast, rendered as light.

0Score

Reliance (RELIANCE) Stock Analysis & Case Study

Is RELIANCE a good buy? The data-driven verdict.

Reliance (RELIANCE) trades at ₹1,326,on the numbers it mixed signals, a Downstox Snapshot Score of 46/100.

On the numbers, Reliance (RELIANCE) mixed signals, a Downstox Snapshot Score of 46/100, weighing fairly valued at 23.1× earnings, ROE of 8.9%, a 37% model probability of trading higher in a year. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 20272031.

Last updated . Data snapshot for research, not investment advice.

The Downstox take on RELIANCE

The puzzle with Reliance is that the market pays a P/E above 23 for a business whose ROE sits below 9 percent and ROCE near 10, returns you would normally expect from a sleepy utility, not a premium-priced conglomerate. You are essentially paying upfront for retail and telecom potential while the consolidated numbers still carry heavy, low-return energy capital. The thin 0.45 percent yield and a middling Piotroski 4 say cash is going into building, not returning. Watch whether returns on all that invested capital actually climb toward the multiple, or the multiple drifts toward the returns.

Downstox editorial view, written by our own analysts. Information, not investment advice.

RELIANCE fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield

Market cap
₹17.95L Cr
Current price
₹1,326
P/E ratio
23.1×
P/B ratio
1.99×
Book value
₹668
Dividend yield
0.45%
ROCE
10.3%
ROE
8.9%
Piotroski F-Score
4/9

Is RELIANCE overvalued? RELIANCE P/E vs its Energy

RELIANCE's P/E of 23.1× sits above the Energy peer median of 11.0×, so on earnings it screens richer than peers, while its 0.45% dividend yield is below the peer median of 4.23%.

RELIANCE P/E
23.1×
Peer median P/E
11.0×
RELIANCE div yield
0.45%
Peer median yield
4.23%

RELIANCE share price target 2027, 2028, 2029, 2030, 2031, a probability view

Unlike a single guessed number, this is a probability-weighted range from a 10,000-path Monte-Carlo simulation on 2.0y of RELIANCE history (-4%/yr drift, 21%/yr volatility).

YearLow (P10)Median target (P50)High (P90)Upside vs today
RELIANCE 2027₹951₹1,244₹1,634-6%
RELIANCE 2028₹799₹1,165₹1,708-12%
RELIANCE 2029₹681₹1,093₹1,756-18%
RELIANCE 2030₹600₹1,024₹1,771-23%
RELIANCE 2031₹528₹961₹1,777-28%

Median (P50) is the central estimate; the P10–P90 band is the 80% confidence range. Probabilities, not promises.

What is the probability RELIANCE goes up, or doubles?

37%
Higher in 1 year
Modelled chance the price is above today in 12 months
25%
Higher in 5 years
Modelled chance the price is above today in 5 years
2%
Doubles in 5 years
Modelled chance of reaching ₹2,653 within 5 years

The bull case for RELIANCE

  • A 23.1× P/E sits in the fair-value band, neither cheap nor stretched.
  • Relatively low volatility (21%/yr), a steadier ride than the typical mid/small-cap.
  • Upside scenario: the model's optimistic (P90) 3-year path reaches ₹1,756.

The bear case & risks

  • Return on equity is a soft 8.9%, capital efficiency trails higher-quality peers.
  • The probability model is cautious 12 months out, only a 37% chance of finishing above today's price.
  • Downside scenario: the model's pessimistic (P10) 3-year path falls to ₹681.

RELIANCE volatility & expected range, how bumpy is the ride?

Over the last 2.0 years RELIANCE compounded at -4%/year with annualized volatility of 21%. That volatility implies a 1-year 80% range of ₹951₹1,634, the honest backbone behind any single price target.

RELIANCE price forecast, the full 60-month probability fan

Spot Price · Today
₹0
Based on 2.0 years of daily NSE data ·0.0% annualised volatility
5-yr median forecast
₹0
P(price ↑ in 5y)
0%
1-Year Forecast
2027
₹0
Median (P50)
6.3%
80% range₹951–₹1,634
P(price ↑)37%
P(price 2×)0%
3-Year Forecast
2029
₹0
Median (P50)
17.6%
80% range₹681–₹1,756
P(price ↑)29%
P(price 2×)1%
5-Year Forecast
2031
₹0
Median (P50)
27.6%
80% range₹528–₹1,777
P(price ↑)25%
P(price 2×)2%

RELIANCE price probability fan

Each band shows where 10,000 simulated paths land. The wider the fan, the more uncertainty.

Probability Fan
RELIANCE simulated paths · 60 months · 10,000 trials
P10–P90 (80%)P25–P75 (50%)Median (P50)

Probability of key outcomes

What are the odds RELIANCE hits common targets within the simulated horizon?

0%
P(↑ 1Y)
Above today's price in 1 year
0%
P(↑ 5Y)
Above today's price in 5 years
0%
P(2×)
Doubles within 5 years
0%
P(↓)
Falls below today in 5 years

Full multi-horizon detail on the RELIANCE price target & forecast page.

RELIANCE Piotroski F-Score: 4/9, how financially strong is it?

4/9

The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. RELIANCE scores 4/9,mixed financial health.

RELIANCE MTF margin & leverage, Upstox, Zerodha, Groww, Dhan

Margin Trading Facility lets you buy RELIANCE with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):

BrokerMargin requiredApprox. leverage
Upstox26.5%3.8×
Zerodha22.6%4.4×
Groww22.6%4.4×
DhanCHEAPEST22.0%4.5×

Compare every broker on the RELIANCE MTF page.

RELIANCE vs peers,Energy comparison

StockP/EDiv yieldMarket cap
RELIANCE (this stock)23.1×0.45%₹17.95L Cr
BPCL5.1×5.67%₹1.34L Cr
ONGC7.4×4.99%₹3.09L Cr
IOC4.8×4.85%₹2.04L Cr
GAIL15.4×4.23%₹1.17L Cr
IGL15.3×2.50%₹23,728 Cr
PETRONET11.0×3.49%₹42,982 Cr

About Reliance: sector, index & market-cap context

Reliance (RELIANCE) is a large-cap NSE-listed company in the Energy sector, and a constituent of the Nifty 50 index group, with a market capitalisation of ₹17.95L Cr. See more Nifty 50 stocks.

How the RELIANCE Snapshot Score & forecast are built

The Downstox Snapshot Score is a transparent, rules-based read of Reliance's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.

This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.

RELIANCE analysis, FAQs

Is Reliance (RELIANCE) a good buy?

On the numbers, Reliance (RELIANCE) mixed signals, a Downstox Snapshot Score of 46/100, weighing fairly valued at 23.1× earnings, ROE of 8.9%, a 37% model probability of trading higher in a year. This is a data snapshot for research, not investment advice.

Is RELIANCE overvalued or undervalued?

RELIANCE trades at 23.1× earnings versus a peer median of 11.0×, so it screens richer than its Energy peers.

What is the RELIANCE share price target for 2031?

RELIANCE's probability-weighted 2031 median target is ₹961, with an 80% range of ₹528₹1,777 (10,000-path Monte-Carlo).

What is the probability RELIANCE doubles in 5 years?

The modelled probability of RELIANCE reaching ₹2,653 (2×) within 5 years is 2%.

What is the bull case for RELIANCE?

A 23.1× P/E sits in the fair-value band, neither cheap nor stretched. Relatively low volatility (21%/yr), a steadier ride than the typical mid/small-cap.

What are the risks in RELIANCE?

Return on equity is a soft 8.9%, capital efficiency trails higher-quality peers. The probability model is cautious 12 months out, only a 37% chance of finishing above today's price.

More on RELIANCE