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Reliance Industries Share Price: Shares of billionaire industrialist Mukesh Ambani-led Reliance Industries Ltd (RIL) have performed poorly in the last three months. RIL has recorded negative returns of around 15 per cent during this period. During this period, Nifty has declined by 4.9 percent. The weightage of Reliance Industries (RIL) in Nifty is 8 percent. Due to this, the weakness in RIL is also being considered as a reason for the fall in Nifty. Since the beginning of the year 2024, RIL shares have fallen by 2.3 percent till now.
Why are investors staying away from Reliance shares?
This is the first time since 2014 that the stock has posted negative annual returns. RIL shares have continued to fall since the company’s Annual General Meeting (AGM) held in August. No time was given in the AGM regarding monetization of Reliance Retail and Reliance Jio, due to which investors were quite disappointed. RIL shares gave returns of -2.2 per cent in September, -9.8 per cent in October, -3 per cent in November and -3.9 per cent in December.
has to face many difficulties
Reliance Industries is facing many difficulties. There is pressure on the margins of the company’s oil-gas and petrochemical business. Operation of the new energy business, where a large portion of the capital expenditure is incurred, is behind schedule. Moreover, the revenue per user (ARPU) of the telecom business is growing slower than expected due to competition and SIM consolidation. However, the full impact of the tariff increase is yet to be seen.
Restructuring and consolidation of retail business is being done by RIL. This has led to delays in unlocking value for shareholders. Additionally, cash flows from capital expenditure incurred over the past few years were expected to be lower than expected due to global headwinds and margins. For this reason the company may need a loan for future capital expenditure.
Stock Status:
Shares of Reliance Industries on Friday closed at Rs. Rs 9.50 with a jump of Rs. It closed at 1273.35. The stock has been falling for the last few days. On November 21 it fell to Rs. It hit a 52-week low of 1,217.70. However, after this it has gained some momentum. The stock hit 52-week high of Rs. Is 1,608.95. (IANS)