The shares of Reliance Industries marked a fresh 52-week low of Rs 2,183 during the early trading sessions on Monday. The stock has been down for the eighth straight day and is the longest streak by the company after March last year.
The stocks fell by 1.78 per cent to touch Rs 2,183.60 over the previous close of Rs 2,223.05. In the morning session over 89,000 shares changed hands on the BSE, this is lower than the two-week average volume of 2.90 lakh shares. The scip so far this year has seen a decline of close to 15 per cent.
Expectations of bounce back of Reliance Industries shares
Analysts expect a bounce back from Reliance and move up to Rs 2,350-2,500 levels.
While Kotak Institutional Equities has assigned a buy rating for Reliance with a fair value of Rs 3,000 over the next 12 months, Jefferies reiterated the buy recommendation with a price target of Rs 3,100.
According to Jefferies the fall in the stock prices was triggered by investor concerns regarding slower growth in the retail segment despite a large rise in capes, rising debt levels and rapid floor space addition. In its notes released on March 16 Jefferies said it projects a 30 per cent core revenue growth and 25 per cent earnings before interest, tax, depreciation and amortization (EBITDA) in the financial year 2024.
Additionally the company's debt-to-equity ratio is also at its 22 year low, this clearly shows that the company's balance sheet is in a position to grow.
Indian markets
Meanwhile, the Indian markets fell sharply in the late morning sessions on Monday after being dragged down by banks, automobile, financials, metal stocks and technology.
