RIL shares: Reasons behind Reliance’s recent weak stock performance; stock price target
Shares of Reliance Industries Ltd have fallen 15 per cent in the past three months and if one were to go by Kotak Institutional Equities, the poor show can be attributed to the oil-to-telecom major’s relatively weak performance in Reliance Retail and a lack of near term catalysts. The domestic brokerage sees a slower pace of store additions for Reliance Retail in FY2025, driven by store rationalisations.
Kotak said the large market share gain by quick commerce companies is impacting Reliance Retail and can keep revenue growth and/or margins stagnant in the near term. In the case of oil-to-chemicals (O2C) segment, while the refining margins improved sequentially in Q2, they remained weak overall. The Petchem business also remained in…
