Reliance Infrastructure Ltd Falls to 52-Week Low of Rs.105.5 Amid Continued Downtrend

Stock Price Movement and Market Context

On 13 Feb 2026, Reliance Infrastructure Ltd’s share price reached an intraday low of Rs.105.5, representing a 3.87% drop on the day and a 2.55% decline compared to the previous close. This marks the lowest price level the stock has seen in the past year, down sharply from its 52-week high of Rs.425. Over the last three trading sessions, the stock has recorded a cumulative loss of 11.48%, signalling persistent selling pressure.

The stock’s performance today also lagged behind the Power sector by 1.21%, while the broader Sensex index opened lower at 82,902.73 points, down 0.92%, and was trading near 82,917.45 points at the time of reporting. Despite the Sensex being only 3.91% below its own 52-week high of 86,159.02, Reliance Infrastructure’s share price has diverged markedly, reflecting company-specific challenges.

Technical indicators show the stock trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – underscoring a bearish trend and weak momentum in the near to medium term.

Financial Performance and Profitability Concerns

Reliance Infrastructure’s recent quarterly results have shown a marked decline in profitability and sales. For the quarter ending December 2025, Profit Before Tax (PBT) excluding other income stood at Rs.221.02 crores, down 89.5% compared to the average of the previous four quarters. Net Profit After Tax (PAT) was negative at Rs.-8.88 crores, representing a 100.9% fall relative to the prior quarterly average. Net sales also contracted by 19.3% to Rs.4,296.52 crores.

These figures highlight a subdued revenue environment and pressure on earnings, contributing to the stock’s weak performance. The company’s ability to generate returns is also under strain, with a Return on Capital Employed (ROCE) averaging just 4.58%, indicating limited efficiency in deploying capital to generate profits.

Debt servicing capacity remains a concern, with a high Debt to EBITDA ratio of 7.32 times, signalling elevated leverage and potential challenges in meeting financial obligations from operating earnings.

Investor Sentiment and Institutional Participation

Institutional investors have reduced their holdings by 1.57% over the previous quarter, now collectively holding 6.79% of the company’s shares. This decline in institutional participation may reflect cautious sentiment given the company’s recent financial trends and valuation metrics.

Such investors typically possess greater analytical resources and tend to adjust their exposure based on fundamental assessments, which may have influenced the stock’s downward trajectory.

Long-Term and Relative Performance

Over the past year, Reliance Infrastructure Ltd has delivered a negative return of 60.02%, significantly underperforming the Sensex’s positive 8.93% return during the same period. The stock has also lagged behind the broader BSE500 index over the last three years, one year, and three months, indicating persistent underperformance relative to the market and its peers.

This extended period of subpar returns reflects ongoing challenges in the company’s business environment and financial health.

Valuation and Comparative Metrics

Despite the weak price performance, Reliance Infrastructure’s valuation metrics suggest it is trading at a discount relative to its historical averages and peer group. The company’s ROCE stands at 3.8%, and it has an enterprise value to capital employed ratio of 0.4, which is considered very attractive from a valuation standpoint.

However, this valuation discount has not translated into positive returns for shareholders over the past year, as the stock’s price has declined by 60.02%. Interestingly, the company’s profits have increased by 1010.2% over the same period, indicating some improvement in earnings despite the share price weakness.

This divergence between profit growth and share price performance may reflect market concerns about sustainability, leverage, or other factors impacting investor confidence.

Summary of Key Metrics

Reliance Infrastructure Ltd currently holds a Mojo Score of 26.0 and a Mojo Grade of Strong Sell, upgraded from Sell on 5 Feb 2026. The company’s market capitalisation grade is 3, reflecting its relative size and liquidity. The stock’s recent price action and financial results have contributed to this grading, signalling caution in the near term.

The stock’s consistent decline over the past year and underperformance relative to the Sensex and sector peers highlight ongoing challenges in the power sector and the company’s specific circumstances.

Conclusion

Reliance Infrastructure Ltd’s fall to a 52-week low of Rs.105.5 underscores a period of sustained price weakness amid disappointing quarterly results, high leverage, and reduced institutional participation. While valuation metrics indicate the stock is trading at a discount, the company’s financial indicators and market performance reflect a cautious outlook. The stock remains below all major moving averages, reinforcing the current downtrend in price momentum.

Investors and market participants will continue to monitor the company’s financial disclosures and market developments closely as the stock navigates this challenging phase.

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