Billionaire Mukesh Ambani-led Reliance Industries Ltd (RIL) shares have fallen around 17% this year, underperforming the Nifty’s roughly 8% decline, even as refining and petrochemical margins have surged. The stock has remained largely range-bound since the end of May, leaving investors with a sharp valuation puzzle: why has a stronger oil-to-chemicals cycle failed to lift India’s most diversified conglomerate?
The answer, according to analysts tracking the stock, is that the market is looking beyond the current earnings boost. It wants evidence that Reliance Retail can restore growth, that the company’s New Energy investments will begin creating value and that the group can generate free cash flow while continuing to invest across multiple businesses.
