Wednesday 14 August 2013

What is Ailing Reliance Industries limited ?

Why is Reliance industries limited under performing in the Indian stock market? The stock which has been darling of the investors for the past many decades has been a gross under performer for the last five years. When you compare its performance with Hindustan Lever, ITC, MAHINDRA & MAHINDRA, TCS, it has been disappointing. The balance sheet of the company is absolutely fine. The net profit is increasing every quarter but this not reflected in its share price. 

I feel that nowadays Reliance is not fancied nor its the favorite of  Foreign Institutional investors and even for that matter domestic funds. I think this cycle has lasted too long and a change is around the corner. Long term investor can enter at the present level of 850 for a target of 1500. The investment time frame is three to five years. The real benefit will come from 1-4-2014 when the gas price hike will come into effect. Forget the investor, even the traders have lost enthusiasm in the Reliance script. Ever since the death of late Shri Dhirubai Ambani and the separation of Ambani brothers , the magic in the scrip has disappeared. Once a trader’s delight, day trader is staying away from Reliance scrip. The Reliance scrip has always been the leader of the bull run in the market.


 At this present juncture, when the market is moving on the basis of handful of scrips, it is very essential that Reliance takes charge to propel the market. The word Reliance is so dear to every person associated with stock market. I hope that Reliance industries limited will not disappoint & once again would become the heart throb of the market. Cheers & HAPPY INDEPENDENCE DAY.

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