Reliance Industries shares sink to 52-week low, shedding Rs 2.26 lakh crore in market cap in 6-day rout 2025 best
Reliance Industries Limited (RIL), India’s largest conglomerate, has recently experienced a significant decline in its stock value, reaching a 52-week low. Over a six-day period, the company’s market capitalization has eroded by approximately ₹2.26 lakh crore. Reliance Industries shares sink to 52-week low, shedding Rs 2.26 lakh crore in market cap in 6-day rout 2025 best This downturn has raised concerns among investors and analysts alike, prompting a closer examination of the factors contributing to this decline and the potential implications for the company’s future.
Recent Stock Performance
As of December 20, 2024, RIL’s shares hit a 52-week low of ₹1,210.15 on the Bombay Stock Exchange (BSE), marking a 5% decline over the past week. This represents a 24% drop from its record high of ₹1,608.95 (adjusted for bonus) reached on July 8, 2024. During this period, RIL’s market capitalization decreased by ₹85,525 crore. In comparison, Reliance Industries shares sink to 52-week low, shedding Rs 2.26 lakh crore in market cap in 6-day rout 2025 best the BSE Sensex declined by 4.4% during the same timeframe, indicating that RIL’s underperformance was more pronounced than the broader market trend. citeturn0search0
Earlier in the year, on June 4, 2024, RIL’s stock experienced an 8% drop, leading to a market capitalization loss of approximately ₹1.4 lakh crore. This decline was part of a broader market downturn following the Lok Sabha election results, which resulted in significant losses for investors across various sectors. citeturn0search1
Factors Contributing to the Decline
Several factors have been identified as contributing to the recent decline in RIL’s stock value:
- High Capital Expenditure (Capex): Analysts have pointed to RIL’s substantial investments in its Retail and Jio businesses, leading to higher capex and a lack of free cash flow generation. However, it is believed that capex has likely peaked, and the company is expected to generate around ₹1 trillion in cumulative free cash flow over FY24-27. citeturn0search0 Reliance Industries shares sink to 52-week low, shedding Rs 2.26 lakh crore in market cap in 6-day rout 2025 best
- Earnings Downgrade: A 5-6% downgrade in consensus FY25 EBITDA estimates has been observed, driven by weak first-half earnings. The Oil-to-Chemicals (O2C) segment faced challenges due to weak gross refining margins and sluggish petrochemical margins, while the Retail business’s EBITDA moderated sharply over the last three quarters. citeturn0search0 Reliance Industries shares sink to 52-week low, shedding Rs 2.26 lakh crore in market cap in 6-day rout 2025 best
- Delay in Jio’s Listing: Limited clarity on the potential timeline and valuation of Jio’s listing has added to investor uncertainty, contributing to the stock’s weakness. citeturn0search0
- Foreign Institutional Investor (FII) Selling: There has been a significant decline in FII ownership in RIL, dropping from 23.6% in Q2 FY23 to 19.6% in Q3 FY25. The energy sector has witnessed additional FII withdrawals of ₹5,000 crore in the past two months, reflecting a broader trend of foreign investors reducing exposure to Indian equities. citeturn0search2
- Weak Global Refining Margins: The O2C division has been under pressure due to weak global refining margins and low petrochemical spreads, affecting the company’s profitability. citeturn0search2
Analyst Perspectives
Despite the recent downturn, some analysts maintain a positive outlook on RIL’s future performance:
- Motilal Oswal Financial Services: The brokerage firm believes that the risk-reward is compelling, as RIL is currently trading close to its bear-case valuations. They anticipate that the company’s capex has peaked and expect substantial free cash flow generation over the next few years. citeturn0search0 Reliance Industries shares sink to 52-week low, shedding Rs 2.26 lakh crore in market cap in 6-day rout 2025 best
- JM Financial Institutional Securities: Analysts at JM Financial have reiterated their ‘Buy’ rating on RIL, expecting net debt to decline gradually as capex moderates and internal cash generation increases. They also highlight that clarity on Jio’s listing timeline could serve as a near to medium-term trigger for the stock. citeturn0search0
- CLSA: The firm notes that while delays in potential IPOs of Jio and Retail have dampened excitement, the start of new energy projects could act as a potential catalyst for the stock. citeturn0search0
Investor Sentiment
The recent decline in RIL’s stock has undoubtedly impacted investor sentiment. Reliance Industries shares sink to 52-week low, shedding Rs 2.26 lakh crore in market cap in 6-day rout 2025 best The company’s underperformance compared to the broader market has raised concerns about its short-term prospects. However, long-term investors may view the current valuation as an opportunity, especially given the company’s diversified business model and potential growth drivers in the telecom and retail sectors.
Conclusion
Reliance Industries’ recent stock performance reflects a confluence of factors, including high capital expenditure, earnings downgrades, delays in subsidiary listings, Reliance Industries shares sink to 52-week low, shedding Rs 2.26 lakh crore in market cap in 6-day rout 2025 best and broader market trends. While these challenges have led to a significant erosion in market capitalization, the company’s strategic investments and potential for future growth suggest that it may overcome these hurdles in the long term. Reliance Industries shares sink to 52-week low, shedding Rs 2.26 lakh crore in market cap in 6-day rout 2025 best Investors should closely monitor developments related to RIL’s capex plans, subsidiary listings, and sectoral performance to make informed decisions.
