4 hrs ago
Reliance Shares Hit 52-Week Low: Buy or Stay Away?
Reliance Industries’ share price fell to its lowest level in a year.
This happened while many Indian stocks were also losing value.
The company’s recent profit and revenue still increased, but investors are worried about its retail business and large spending plans.
They are also watching changing crude-oil prices and the company’s cash flow.
Reliance may raise money by selling securities backed by rental income from group companies.
Some experts think the lower share price could be a good opportunity for people investing for several years.
Other experts say investors should buy slowly or wait until the price becomes more stable.
Technical analysts identified possible support around ₹1,100 to ₹1,200 and resistance around ₹1,300 to ₹1,325.
Reliance Industries shares fell more than 2% to ₹1,198, a fresh 52-week low, during a broader Indian market selloff.
The stock was down about 24% year to date, underperforming the Sensex, which had fallen nearly 15%.
Reliance reportedly plans to raise up to ₹10,000 crore through five-year asset-backed securities backed by rental receivables.
Analysts attributed the decline to concerns over retail growth, elevated capital expenditure, weak free-cash-flow conversion and crude-price volatility.
Some analysts see the correction as a long-term buying opportunity, while technical analysts advise waiting for price stability or stronger support.
- Who
- Reliance Industries, its investors and market analysts.
- What
- Reliance Industries shares fell to a fresh 52-week low below ₹1,200, while the company reportedly considers raising up to ₹10,000 crore through asset-backed securities.
- Where
- On the Bombay Stock Exchange and in the Indian stock market.
- When
- During the Monday trading session identified in the article as 28 August; the article also refers to performance in September and to an all-time high in January 2026.
- Why
- The decline occurred amid a broader market selloff and investor concerns about retail growth, capital expenditure, free-cash-flow conversion, crude-price volatility and foreign institutional selling.
Long-term buyers
Cautious investors
Whether the correction is an opportunity
Long-term buyers
Religare Broking and Ventura analysts said the long-term investment case remains intact, citing Jio’s growth, O2C prospects, consumer and new-energy businesses, and the potential Jio Platforms IPO. Religare maintained a buy view with a ₹1,696 target price.
Cautious investors
Short-term investors may prefer to wait for clearer evidence of stable O2C margins, stronger free cash flow and improved retail performance. Ventura recommended buying in tranches rather than all at once.
Business fundamentals
Long-term buyers
Reliance’s latest reported profit and operating revenue increased, while Jio’s average revenue per user continues to rise. Analysts also said valuations had become more reasonable after the decline.
Cautious investors
Investors remain concerned about retail growth, elevated capital expenditure, subdued free-cash-flow conversion and whether recent spending will generate sufficient returns.
Technical outlook
Long-term buyers
A gradual accumulation strategy could suit investors with a multi-year horizon if the stock stabilizes near cited support levels.
Cautious investors
The stock trades below key moving averages, with weekly RSI near 35 and a pattern of lower highs and lower lows. Analysts warned that a decisive break below ₹1,200 could bring further weakness.
Key facts
- 52-week low
- ₹1,198 intraday on the BSE
- Year-to-date performance
- Reliance shares were down about 24%, compared with nearly 15% for the Sensex.
- Reported fundraising
- Up to ₹10,000 crore, or approximately $1 billion, through asset-backed securities.
- Reported securities
- Five-year notes carrying an estimated 8.35%–8.40% coupon, backed by rental receivables from group companies including Reliance Jio Infocomm.
- Q1FY27 profit
- ₹20,946 crore, up 16% year on year and 23.42% quarter on quarter.
- Q1FY27 operating revenue
- ₹3,11,850 crore, up 25.41% year on year and 4.43% quarter on quarter.
- Technical levels
- Analysts cited support near ₹1,200 and ₹1,100–₹1,150, with resistance around ₹1,300–₹1,325.
Quotes
Vinit Bolinjkar
Head of Research at Ventura
“The potential Jio Platforms IPO could further unlock value and improve the visibility of the underlying businesses. Following the recent correction, valuations have become more reasonable, in our view, offering an attractive entry point for long-term investors. We maintain a buy view with a target price of ₹1,696.”
livemint.com
“We would favour buying in tranches because crude volatility and the returns on recent capital spending remain near-term uncertainties. Short-term investors may prefer to wait for clearer evidence of stable O2C margins and improving free cash flow.”
livemint.com
Sources
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