Reliance Industries shares down 25% from peak, Rs 5.4 lakh crore gone! Time to pounce?
[hfe_template id='11223']
[ad_1]
Shares of billionaire Mukesh Ambani-led Reliance Industries (RIL) have been under bear pressure, shedding 25% of its value since hitting a record high of Rs 1,608.95 on BSE on July 8. Investors have seen a staggering Rs 5.4 lakh crore vanish as foreign institutional investors (FII) sold the bluechip stock amid a retail slowdown and weak refining margins. The stock has underperformed Nifty by 10% since January 2024, fueling extreme pessimism. However, a glimmer of hope has emerged—RIL has rebounded 4% in the last two trading sessions, suggesting some bottom-fishing. But is this just a dead-cat bounce, or is the worst truly over? Pessimism at Extreme Levels Analysts at Jefferies believe the current valuation is overly bearish, noting that the market cap now implies an enterprise value of just $48 billion for RIL’s retail business, compared to $106 billion in its last funding round. “A combination of same-store sales growth and area addition...