New Delhi: Reliance Industries Limited (RIL), led by Mukesh Ambani, is on track to end 2024 with negative returns for the first time in almost a decade. The company's stock has struggled throughout the year, reflecting broader challenges in its key business segments. RIL's market capitalization has fallen by more than Rs 4.
4 lakh crore since its peak in July 2024. Shares have dropped nearly 21 per cent from their all-time high of Rs 1,608.95, signaling growing investor concerns.
Slowing Growth Over The YearsReliance Industries, which delivered impressive returns in the past, has seen its growth slow over the last few years. After a strong 70.55 per cent return in 2017, its performance gradually dipped: - 19.
32 per cent in 2021, - 7.60 per cent in 2022, and - 1.44 per cent in 2023.
Why Company's Performance Has Been Weighed Down?In 2024, the company's performance has been further weighed down by a challenging economic environment and slower earnings growth. Analysts have highlighted rising costs, capital expenditure, and intense competition as key concerns. Reliance Retail Faces PressureReliance Retail, a major arm of RIL, has encountered significant challenges this year.
Weak demand in the fashion segment and strong growth in previous years created a high base, limiting revenue growth. Despite an increase in store footfall, the company closed 1,185 stores in 2024. The rise of quick commerce (QC) platforms has also added pressure, increasing competition in the retail market.
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