Shares of Reliance Industries Ltd (RIL) have delivered zero returns on a year-to-date (YTD) basis, indicating a lack of significant movement in the stock price. As of December 29, 2023, the stock ended at ₹1,292.43, and it recently closed at ₹1,284, reflecting a slight dip of 0.84% in 2024. Despite its large cap status, RIL's stock has been underperforming, falling below its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages.
Stock performance and volatility
The stock's performance has shown significant volatility, with a beta of 1.2, suggesting that RIL shares have been prone to larger price fluctuations compared to the broader market. Over the past month, the stock has experienced a correction of around 8%, while it has fallen by approximately 4.11% in the last week.
This increase in volatility makes RIL shares a more unpredictable option for those considering a share market investment, and investors should be aware of the potential risks in the short term.
Market capitalisation and trading volume
RIL's market capitalisation dropped to ₹17.37 lakh crore as of the latest session. The stock's closing price of ₹1,284 marked a 1.68% decline, and a total of 9.27 lakh shares were traded, amounting to a turnover of ₹119.14 crore on the Bombay Stock Exchange (BSE).
These figures highlight a slowdown in the stock's performance, particularly in comparison to its all-time high of ₹1,608.95 recorded on July 8, 2024. On the other hand, RIL reached a 52-week low of ₹1,149 on November 10, 2023.
Yearly performance and technical indicators
Looking at its performance over the past year, RIL shares have gained 9.90%, showing positive growth despite recent struggles. However, technical indicators suggest that the stock may not be trending in a clear direction.
The Relative Strength Index (RSI) for RIL is currently at 30.2, indicating that the stock is not in either an overbought or oversold condition, leaving it in a neutral zone. Investors seeking to make a share market investment in RIL should keep an eye on these technical indicators to determine the best entry point.
Growth prospects and future outlook
Despite its lacklustre performance in the near term, RIL's growth prospects remain positive. The company is focused on expanding its presence in several sectors, including telecom, retail, and new energy.
The retail and telecom sectors are expected to drive future revenue growth, with 5G opportunities and investments in AI/data centres and renewable energy being key areas of focus. RIL is targeting to double its EBITDA over the next five years, which should provide a potential boost to its stock price and could offer growth opportunities for those looking to invest in stocks.
Challenges and market conditions
While RIL's core business, including refining and petrochemicals, faces a muted outlook in the short term, other segments, such as gas production, are expected to remain stable. In addition, the company has been actively investing in green energy, with plans to invest ₹75,000 crore in its new energy businesses.
However, the weak outlook for refining and petrochemicals may limit the stock's short-term performance. As a result, those interested in share market investment should weigh these factors carefully when considering RIL for their portfolio.
Outlook for the future
Looking ahead, RIL's focus on diversification into green energy, retail, and telecom makes it well-positioned for long-term growth. The company's investments in future technologies and its ongoing strategic initiatives could drive growth in the coming years.
However, the current market conditions and weak performance in certain segments suggest that the stock may continue to experience fluctuations in the short term. Investors considering RIL as part of their share market investment strategy should monitor the company's progress and any new developments that may impact its stock price.
For android only