Reliance Industries, a famous company in India, is making news again! They have restarted a deal with Venezuela’s state oil company, PDVSA, to swap oil. This agreement had stopped for some time because of rules from the U.S. government. However, in July, the U.S. allowed this oil trade to happen again, according to a letter from PDVSA.
Just earlier this month, a large ship carrying around 1.9 million barrels of Venezuelan oil left for a port in India called Sikka. In return, Reliance sent a smaller shipment of 500,000 barrels of another kind of oil back to PDVSA.
But not everything is good news for Reliance this year. 2024 has been tough, and their stock prices are likely to end in the red. This is the first time in nearly ten years that the company’s shares are falling. Since their highest price in July, the value of Reliance shares has dropped by around 21%, losing more than ₹4.4 lakh crore in value.
In the past, Reliance did very well, with a fantastic 70.55% return in 2017 and steady profits until 2020. But now, their growth is slowing down. In 2021, their return fell to 19.32%, then 7.60% in 2022, and just 1.44% in 2023. Analysts are becoming careful with their predictions, mentioning problems like slower growth, rising costs for buildings, and a need for spending to grow the business. Additionally, the quick rise of companies that deliver things fast is putting pressure on what Reliance makes, especially in the retail part of their business.
According to data from Niftystat, experts say there could be a better future for Reliance. They have an average target price of ₹1,602 for the stock, which means it could go up by 30% from current prices. 37 analysts agree on a ‘Buy’ recommendation for Reliance shares.
On Thursday, Reliance shares closed at ₹1,230.60, which is down 1.8%. This drop came while the main market index, the Sensex, also went down by 1.12%. The stock has fallen over 16% in the last three months, and 4% over the past year, leaving the company’s total value at ₹16,65,293 crore.
Disclaimer: The opinions and suggestions from experts do not necessarily represent the views of Niftystat.
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