Shares of Reliance Infrastructure Ltd extended their sharp upward move for the third straight session on Friday. The stock jumped 4.98 per cent to hit a day high of Rs 247.40. At this price, it has gained 20.07 per cent in just three trading days.
The counter saw high trading volume on BSE as around 4.70 lakh shares changed hands at the time of writing this story. The figure was higher than the two-week average volume of 3.87 lakh shares. Turnover on the counter came at Rs 11.23 crore, commanding a market capitalisation (m-cap) of Rs 9,530.92 crore.
A market expert underscored that the company faces 'significant' financial challenges. "Reliance Infra faces significant financial challenges, with declining revenues and profitability. High operational expenses and debt obligations strained its financial health. Despite these challenges, the company has opportunities for growth through strategic partnerships and project completions. However, its ability to execute these plans effectively will be crucial. The infrastructure sector's growth potential is substantial, but the company must improve its financial stability to capitalise on it. Turnaround profitability and debt reduction are essential for long-term sustainability," Atul Parakh, CEO of Bigul, stated.
Technically, support for Reliance Infra shares could be seen in the 230-220 range. On the higher end, a decisive close above Rs 250 level is required for more upside.
"The counter has a strong resistance placed around the Rs 250 zone, breaching which it is likely to move towards the Rs 280-290 range. On the lower end, Rs 230-220 is likely to cushion any shortcomings in the near period," said Osho Krishan, Senior Research Analyst (Technical & Derivatives) at Angel One.
The scrip traded higher than the 5-day and 10-day simple moving averages (SMAs) but lower than the 20-day, 30-, 50-, 100-, 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 47.80. A level below 30 is defined as oversold while a value above 70 is considered overbought.
As per BSE, the stock has a negative price-to-equity (P/E) ratio of 3.99 against a price-to-book (P/B) value of 1.17. Earnings per share (EPS) stood at (-)60.46 with a return on equity (RoE) of (-)29.27.
Anil Ambani's RInfra is engaged in the business of providing EPC services, power distribution in Delhi and also in the implementation, operation and maintenance of several projects in defence sector and infrastructural areas such as metro, toll roads and airports. It has also executed the Mumbai Metro Line One project. As of December 2024, promoters held a 16.50 per cent stake in the company.