RIL not FAANG-like yet as O2C, telecom make up 70% of value: Edelweiss

It downgrades stock from 'buy' to 'hold'; CLSA, too, lowers rating

Shares of Reliance Industries (RIL) have been on a tear over the last few months. This has driven up the valuation for the stock. To justify these high valuations many on the Street have started to club RIL with so-called FAANG stocks — an acronym for Facebook, Amazon, Apple, Netflix, and Alphabet (Google). 

The American technology giants comprising the FAANG stocks have a combined market capitalisation (m-cap) of $5 trillion. These stocks have seen a huge surge in their valuations and enjoy price-to-earnings (P/E) multiple much higher than the market.

RIL, too, has diversified from pure-play oil-to-chemical (O2C) business to new-age digital