RIL shares dive 7% to hit one-year low; is Reliance stock signalling a 'Buy'?
Reliance Industries share price: The scrip traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 30.01.
- Apr 7, 2025,
- Updated Apr 7, 2025 2:34 PM IST
Shares of index-heavyweight Reliance Industries Ltd (RIL) slumped on Monday in line with the sharp decline in domestic benchmarks. The stock plunged 7.40 per cent to hit a 52-week low of Rs 1,115.55. It was last seen trading 4.18 per cent lower at Rs 1,154.35. At this price, the scrip has slipped 5.51 per cent on a year-to-date (YTD) basis compared to a 7.63 per cent drop in benchmark BSE Sensex during the same period.
The Mukesh Ambani-led company recently said it would invest Rs 65,000 crore to establish 500 compressed bio-gas (CBG) plants across Andhra Pradesh. "The project is being developed with a capital investment of Rs 139 crore and is the first in a series of 500 projects involving a total capital outlay of Rs 65,000 crore for AP. The plant will be developed with innovative technology and utilise Napier grass that would be developed on barren and wastelands to produce bio-gas," it stated.
A few analysts advised buying RIL shares, given 'mouth-watering' price levels and the company's future value unlocking.
"Reliance Industries shares look good at these current valuations. Reliance's potential listings of telecom and retail businesses could be the next possible triggers. Ramping up the new energy business could be another one. Even at the present situation, Rs 1,800-1,850 levels would be a fair value for the stock," said Sharad Avasthi, Head of Research (PCG) at SMIFS, told Business Today.
"The stock has corrected quite sharply. There is a lot of value unlocking which will be happening out there. Rs 1,100-1,500 levels would be mouth-watering pricing for RIL shares. The only advice would be that don't invest in one go but buy it in a staggered way," said Dharmesh Kant, Head of Equity Research at Cholamandalam Securities.
Technically, the scrip traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 30.01. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The stock has a price-to-equity (P/E) ratio of 44.27 against a price-to-book (P/B) value of 2.98. Earnings per share (EPS) stood at 26.11 with a return on equity (RoE) of 6.74. According to Trendlyne data, RIL has a one-year beta of 1.2, indicating high volatility.
As of December 2024, promoters held a 50.13 per cent stake in Reliance.
Shares of index-heavyweight Reliance Industries Ltd (RIL) slumped on Monday in line with the sharp decline in domestic benchmarks. The stock plunged 7.40 per cent to hit a 52-week low of Rs 1,115.55. It was last seen trading 4.18 per cent lower at Rs 1,154.35. At this price, the scrip has slipped 5.51 per cent on a year-to-date (YTD) basis compared to a 7.63 per cent drop in benchmark BSE Sensex during the same period.
The Mukesh Ambani-led company recently said it would invest Rs 65,000 crore to establish 500 compressed bio-gas (CBG) plants across Andhra Pradesh. "The project is being developed with a capital investment of Rs 139 crore and is the first in a series of 500 projects involving a total capital outlay of Rs 65,000 crore for AP. The plant will be developed with innovative technology and utilise Napier grass that would be developed on barren and wastelands to produce bio-gas," it stated.
A few analysts advised buying RIL shares, given 'mouth-watering' price levels and the company's future value unlocking.
"Reliance Industries shares look good at these current valuations. Reliance's potential listings of telecom and retail businesses could be the next possible triggers. Ramping up the new energy business could be another one. Even at the present situation, Rs 1,800-1,850 levels would be a fair value for the stock," said Sharad Avasthi, Head of Research (PCG) at SMIFS, told Business Today.
"The stock has corrected quite sharply. There is a lot of value unlocking which will be happening out there. Rs 1,100-1,500 levels would be mouth-watering pricing for RIL shares. The only advice would be that don't invest in one go but buy it in a staggered way," said Dharmesh Kant, Head of Equity Research at Cholamandalam Securities.
Technically, the scrip traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 30.01. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The stock has a price-to-equity (P/E) ratio of 44.27 against a price-to-book (P/B) value of 2.98. Earnings per share (EPS) stood at 26.11 with a return on equity (RoE) of 6.74. According to Trendlyne data, RIL has a one-year beta of 1.2, indicating high volatility.
As of December 2024, promoters held a 50.13 per cent stake in Reliance.