Rs 1 lakh crore gone! Ambani slips 3 places on global rich list: What spooked RIL stock?
MUMBAI: Shares of oil-to-telecom conglomerate Reliance NSE 3.00 % Industries (RIL) were hammered in trading on Monday after the company on Friday posted a 15 per cent year-on-year (YoY) drop in September quarter net profit, as the pandemic hit sales of most of its products. The index heavyweight tumbled 8.62 per cent to Rs 1,877, while partly-paid shares of the company t ked 10 per cent to hit the lower circuit limit and close at Rs 1,066. The decline eroded more than Rs 1 lakh crore from the company’s market capitalization.
The sharp drop in the stock shaved off $6.8 billion from Mukesh Ambani's net worth, and pushed him down from sixth rank on the world's rich list to ninth place, with his net worth down at $71.5 billion, according to Forbes Real Times Billionaires List.
Earlier in the day, Macquarie came up with an “underperform” rating for the stock, and maintained it target price at Rs 1,320. Even after Monday’s steep selloff, this would imply a downside of 30 per cent.
“With a one-two year view, we agree with India’s long-term digital opportunity, but we continue to see meaningful execution challenges and no moat for Reliance particularly in retail. Our earnings and cash flow estimates are meaningful below consensus, and the stock is trading at our blue sky valuation," Macquarie analysts said in a ne.
The brokerage forecasts RIL’s FY22 EPS to grow 20 per cent to Rs73 per share, but pointed out that this was 23 per cent below consensus, and expned that it views a slower recovery in RIL’s refining and chemical margins, slower pace of Arpu growth, lower retail margins as JioMart scales up, high competition in retail, higher working capital requirement for retail, higher capex for Jio and retail, and higher min ity interests.
After Monday's sharp fall, the stock is off 20.7 per cent from its record high of Rs 2,368 hit on Sep. 16, but up 116 per cent from its March low.
bumper rise and fall is feature of the global market . some technical and other non- technical .
It was taken up northwards by strange buyers like Saudi Aramco without any fundamentals during the Covid-crisis so it has to come down back to reasonable levels like 1,650 / lower.
The headline should be common investors lost 1 lakh crores
Biju Shahul Hameed
The whole world is trembling with fear of corona, many many companies are down, but Reliance was not down, the profit is a little bit less than 2019 Quarter that's it. Macquarie would buy the shares on somebody else name if they need!!!
When they want to buy Reliance , i suspect they release such negative news so that simple, average, innocent people sell. Sebi shud not allow Macquerie to buy Reliance for next 3 months
everything is manipulated including SEBI, which is not run by true pros
Look beyond quarterly results. There is clear Strategy to shift from dependence on petro chemical to Retail and Jio. Big investors are not blind and herd. Investment shall be on business model .
jio service is deterioting day by day half the time net speed is like 2g..phone doesn't get connected... customer service worst...
Harish Chandra Fancy
RIL will recover soon
Don't worry FRIENDS
I am holding this share since last 12 years. Never had a delay in getting my dividend, bonus or . It may also be ned that Mukesh ambani is also on the broad of Bank of America.
Big companies CEO in US like Steve Jobs, Warren buffet, bill gates, etc take investors summit and answer every question of investors and treat them as their partners. But Ambani uses investors money for his own expenses like his Antilla home, expensive sports cars collection.
He doesn't even cares for his employees. Last year give them peanuts for increment and this year zero increment in sries. He is just a crooked and selfish businessman.
This was expected. It has to fall to rupees 1400 if not more.
Raising the tariffs will result in lower active users for sure. As of now Jio is having the lowest percent of active users around 75-77% as compared to 98% of Airtel.
RIL may go below 1000.
There is nothing to worry. This may be temporary downfall. Will soon regain the original share price. Have fa th in RIL. Alaskasworld
It is a big surprise for investors. Reliance share price drop will pull down the entire index and other shares will also start drop. Bears have gained upper hand as of now.