Money on the markets

A maturing market amid the mayhem

Reliance Ind shares fall 3.7 pct

July 27, 2009

Reliance Industries, India’s top listed company, struggled on the first trading day of the week after posting disappointing results on Friday.

The energy major slipped 3.7 percent to close at 1939 rupees, dragging the BSE Oil & Gas Index down 3 percent.

The company said quarterly net profit fell 11.5 percent to 36.36 billion rupees from 41.1 billion a year ago, its third straight quarterly decline. The results were worse than what the market was expecting.

Mukesh Ambani-led Reliance Ind is involved in a gas supply dispute with Reliance Natural Resources, which is led by Mukesh’s brother Anil.

reliboThe Bombay High Court last month ruled in favour of Reliance Natural, triggering an over 7 percent fall in Reliance Ind shares on June 15.

But investors have been rewarded well in the past – the counter has jumped over 20 percent since early April this year (see chart).

Do you think it is a good time to pick up Reliance Industries shares?

Comments

I think Reliance is a gem of a stock.. pick it anytime.. do a SIP in the stock.. buy every month and become rich :)

Posted by Raju | Report as abusive
 

ofcourse it is. When can there be a better time? :D

Posted by r | Report as abusive
 

Even though Reliance cracked by 3.7% today,Sensex managed to hold its own.If this becomes a well- defined trend,Reliance may loose its leadership status to Infosys-ICICI-L&T combine.

Global economic revival is not boosting up refinery sector.This sector is faced with declinig margins.More capacities are due to be added in next 3/4 years but there is no major change expected in demand pattern.

Reliance has escaped refinery sector downturn with a mere 11.5% decline in profits.Some refineries are faced with 40% or more decline.Reliance is better placed compared to international competitors.

Reliance management is a smart one.They are shifting their product mix to gas exploration.Reliance should be able to get sales and profit traction out of KG gas.Starting June 2009Q,Reliance should be able to recover from a fall in topline and bottom line.

Give or take,another Rs 200/- correction,and if it does take place,one can sing :It can’t get worse!

Posted by A.Kapoor | Report as abusive
 

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
  •