RIL slump tracks weak earnings, valuation gap

Stock down 21.2% since FY24-end; share price at 17-month low

- KRISHNA KANT

Reliance Industries Ltd (RIL) was one of the biggest losers among Sensex stocks on Monday, falling 2.4 per cent compared to the index's 0.15 per cent decline.

The stock is now down 21.2 per cent since the end of March last year, while the benchmark index has lost just 0.8 per cent over the same period. RIL shares (at ₹1,171.10 apiece on the BSE) have fallen to their lowest level in 17 months (since November 2023), lagging an index that remains nearly 9 per cent higher in that span.

RIL's recent share price weakness and its underperformance on the bourses are linked to sluggish earnings growth and a widening gap between its equity valuation and key profitability metrics such as return on equity (RoE).