I am sure you are worried about the market cap of RIL touching an all-time high of Rs.900,000 crore ($130 billion). For the time being, let me put the market cap aside and look at the results of RIL for the September quarter. Let us look at the highlights.

· Net profits for the Sep quarter higher by 18% on a YOY basis at Rs.11,262 crore with retail and digital services driving the growth.

· For the September quarter, retail and the Jio telecom business account for 30% of the EBIT, up from 20% last year; hinting at a huge shift in its revenue and profit profile.

· Net sales for the quarter were up by just about 3% at Rs.149,000 crore and this growth was largely driven by the retail and telecom business.

· Just to give an idea, retail business grew at 27% YOY while the digital business grew by a whopping 43% on a YOY basis, actually growth for the company.

· The traditional refining and petchem business count not contribute to the overall growth as the price of Brent Crude was down by nearly 17% during this period.

· RIL’s gross refining margins (GRM) came in at $9.4/bbl, which is lower than the margins they enjoyed in the previous year. However, it is still best in last four quarters.

If one were to summarize the above key data points, one thing is clear that the growth is actually coming from the new retail and digital businesses while the traditional refining and petchem business has been under pressure. That is understandable in the current environment. The fall in export value clearly indicates the global pricing pressures.

The company may end the year with net profits of around $7 billion and that values the company at around 18 times P/E. That is not exactly expensive, although the upsides may be capped due to weakness in the cash generating businesses. While RIL is still a stock you must have in your portfolio, it may make a lot more sense for you to keep chipping away at the stop on every dip.