Reliance Industries Shares Drop 4%: Slips 20% from 52-Week High

On November 04, 2024, Reliance Industries (RIL) shares fell to an over 9-month low of ₹1,289, dropping 4% in intra-day trading on the BSE amid high trading volumes. This is the lowest price for the company, which has the highest market capitalisation in India since January 10, 2024. The stock has decreased by 20% from its 52-week high of ₹1,608.95 (adjusted for a 1:1 bonus) reached on July 8.

Financial Highlights

In the last month, RIL has lagged behind the market, losing 7%, as the company reported weak earnings for the quarter ending September 2024. During the same period, the BSE Sensex fell by 3.9%.

RIL’s consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) reached ₹86,682 crore for the 6 months ending September 2024, slightly down from ₹86,715 crore during the same period last year.

The company’s overall operating and financial performance remained stable in the first half of fiscal 2025, with healthy revenue growth of 6%. Operating profitability was also steady compared to the previous year.

However, the profitability in RIL’s oil-to-chemical (O2C) segment has decreased, as margins have weakened due to a sharp drop in product prices from increased supply and lower global demand.

Additionally, according to CRISIL Rating, retail segment growth was sluggish due to weak demand, especially in the Fashion and lifestyle area.

About Reliance Industries Ltd

Dhirubhai Ambani established Reliance Industries and is currently led by his eldest son, Mukesh Dhirubhai Ambani. The Ambani family owns about 50% of the company’s shares. It is a Fortune 500 company and is the largest private sector corporation in India. It was founded between 1980 and 1982, with its first plant for petrochemicals and polyester filament yarn.

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