Reliance Industries (LSE:RIGD) Risk Assessment

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What is Reliance Industries Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Reliance Industries is: Moderate Risk: Sensitive, better choose undervalued stock.

Competitive Comparison of Reliance Industries's Risk Assessment

For the Oil & Gas Refining & Marketing subindustry, Reliance Industries's Risk Assessment, along with its competitors' market caps and Risk Assessment data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Reliance Industries's Risk Assessment Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Reliance Industries's Risk Assessment distribution charts can be found below:

* The bar in red indicates where Reliance Industries's Risk Assessment falls into.

Reliance Industries (LSE:RIGD) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Reliance Industries Risk Assessment Related Terms

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Reliance Industries (LSE:RIGD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Reliance Industries Ltd (LSE:RIGD) » Definitions » Risk Assessment

Comparable Companies

Traded in Other Exchanges

RELIANCE:India 500325:India RIGDl:UK RLI:Germany

Address

222, Nariman Point, 3rd Floor, Maker Chambers IV, Mumbai, MH, IND, 400021

Website

https://www.ril.com

Reliance Industries Ltd is engaged in hydrocarbon exploration and production, refining and marketing, petrochemicals, financial services, retail, and communications. The Group has five principal operating and reporting segments: Oil To Chemicals (O2C), Oil and Gas, Retail, Digital Services and Financial Services. Located in west India, Reliance's refineries produce a range of petroleum products that find use as fuel variants, feedstock, and fuel for power and cement plants. Fuels produced in refineries are exported to several countries and can be processed into any grade of gasoline or diesel. The Oil to Chemicals segment that derives the majority revenue includes Refining, Petrochemicals, fuel retailing through Reliance BP Mobility Limited, aviation fuel, and bulk wholesale marketing.

Reliance Industries (LSE:RIGD) Headlines

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