RIL Mukesh Ambani's Reliance Industries loses over $50 billion in market cap on earnings dismay
Mumbai/IBNS: Reliance Industries Ltd. has seen a decline of nearly $50 billion (Rs 4.2 lakh crore) in market capitalization since reaching a peak in July, as the Indian conglomerate contends with weaker earnings and a slowing economy, reports Bloomberg.
Shares of the refining-to-retail giant, headed by billionaire Mukesh Ambani, have shown minimal gains this year, significantly underperforming the NSE Nifty 50 Index—the largest performance gap in almost a decade.
Despite recent pressures from foreign selloffs and concerns about earnings growth, India's major indexes remain some of the best-performing in Asia for 2024.
The recent slump in Reliance's stock primarily stems from underwhelming quarterly earnings, which missed analyst forecasts for the sixth consecutive quarter due to sluggish demand in its core oils-to-chemicals sector, according to the Bloomberg report.
While the company offered a one-for-one bonus share to investors at its annual meeting in August, it withheld anticipated announcements about the public listings of its telecom and retail arms.
Meanwhile, its telecom division, Reliance Jio Infocomm Ltd., reported a subscriber drop in August following a recent tariff increase.
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