Mumbai: The share of Reliance Industries Limited (RIL) has underperformed in the last three months, and the oil to telecom conglomerate is set to deliver negative return for the first time in a decade.
Reliance Industries’ stock has declined 2.3 per cent since the beginning of 2024. This is the first time since 2014 that the Mukesh Ambani-led company is giving negative returns on an annual basis.
The stock has been witnessing a decline since the company’s Annual General Meeting (AGM) held in August. No timeline was given for the monetisation of Reliance Retail and Reliance Jio in the AGM, which has disappointed the investors.
RIL has posted negative returns for four consicutive months at -2.2 per cent in September, -9.8 per cent in October, -3 per cent in November, and -3.9 per cent in December.
Apart from this, Reliance Industries is facing multiple issues including pressure on the margins of the company’s oil-gas & petrochemical business and delay in the operationalisation of the new energy business, where a large part of the company’s capital expenditure (Capex) is invested.
Meanwhile, the average revenue per user (ARPU) of the company’s telecom arm Reliance Jio is growing at a slower pace than expected due to competition and SIM consolidation. However, the full impact of the tariff hike is yet to come.
Reliance Industries is restructuring and consolidating the retail business and that has delayed value unlocking for shareholders.