If you ask me to name one Best Indian Stock than it will be one and only “Reliance Industries”. Yes, Reliance Industries founded by Dhirubhai Ambani is the most fundamentally strong company in the world.
Reliance group companies have been one of the biggest value creators in Indian stock markets. Reliance Industries is primarily into five major business segments namely:
1.Exploration and production
2.Petroleum refining and marketing
3.Petrochemicals
4.Textile and
5.Retail.
The reserves of the Reliance are so big that even with over Rs. 35,000 Crores of debt in its book the company has a debt-equity ratio of well below one.
Its difficult to analyze a company with so many big business segments in this small post. But overall Reliance Industries has great fundamentals. The company has been making huge investments in all its business segments.
The Reliance Stock is the largest weight stock in the Sensex. It’s weightage in the Sensex is around 15%. Reliance Industries is the largest company in Asia-Pacific according to the market capital.
Now, This means that every 1 rupee change in the price of reliance stock will fluctuate the Sensex by 6 points. So if the Reliance stock falls by Rs.100 than the Sensex will fall by 600 and vice versa. And according to the analysts, by the end of 2012, the refinery margin of Reliance Petroleum will be $ 12 per barrel which is extremely good margin.
Reliance is among world’s Top 5 Largest Petrochemical Refineries and largest in Asia-Pacific.
So If you want to buy only one stock in your life than Buy Reliance Industries. If you don’t know anything about the stock market than do nothing but keep buying the stocks of Reliance Industries and hold them for decades. They will give you extra ordinary returns on your Investments.
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