Reliance Industries Limited

“Reliance Industries owns a genuinely compelling long-duration asset in Jio — a structural duopoly with widening ecosystem moat in a market still early in digital penetration — but the investment case is currently priced for full execution of the bull thesis. At 24x earnings, 2.26x book, and a 9.1% ROE, there is no margin of safety for the base case, let alone the risks from a $75-80B speculative New Energy bet, governance concentration around a single key person, and O2C structural headwinds. The 10-year return in a base case is a modest 1.5-2x. TRACK for a 15-20% correction or meaningful evidence of ROIC inflection before initiating a full position.”