Reliance Infrastructure Ltd Falls to 52-Week Low of Rs.110.5 Amid Continued Downtrend

Stock Price Movement and Market Context

On 12 Feb 2026, Reliance Infrastructure Ltd’s share price declined by 4.04% intraday to hit Rs.110.5, its lowest level in the past year. The stock has underperformed its sector by 4.09% today and has been on a losing streak for two consecutive days, resulting in an 8.11% drop over this short period. The day’s low coincided with the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.

In contrast, the broader market has shown relative resilience. The Sensex opened 265.21 points lower but is currently trading at 83,878.35, down 0.42%. Notably, the Sensex remains just 2.72% shy of its 52-week high of 86,159.02 and has recorded a 2.87% gain over the past three weeks. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating a generally positive medium-term trend for the benchmark index.

Long-Term Performance and Valuation Metrics

Reliance Infrastructure Ltd’s one-year performance starkly contrasts with the broader market, delivering a negative return of 57.40% compared to the Sensex’s positive 10.12% over the same period. The stock’s 52-week high was Rs.425, highlighting the extent of the decline to the current low of Rs.110.5.

The company’s valuation metrics present a mixed picture. Despite the sharp price decline, the stock exhibits a very attractive valuation with an Enterprise Value to Capital Employed ratio of just 0.4, significantly below peer averages. Its Return on Capital Employed (ROCE) stands at a modest 3.8%, reflecting limited capital efficiency. This low ROCE, combined with a high Debt to EBITDA ratio of 7.32 times, underscores challenges in servicing debt obligations effectively.

Financial Results and Profitability Trends

The company’s recent quarterly results further illustrate the pressures on its financial performance. For the quarter ending December 2025, Profit Before Tax (PBT) excluding other income stood at Rs.221.02 crore, representing a steep decline of 89.5% compared to the previous four-quarter average. Net sales also fell by 19.3% to Rs.4,296.52 crore in the same period.

Net profit after tax (PAT) recorded a loss of Rs.8.88 crore, a 100.9% decrease relative to the prior four-quarter average, signalling a challenging earnings environment. Despite these setbacks, the company’s profits have shown a remarkable rise of 1010.2% over the past year, indicating some volatility in earnings figures.

Institutional Investor Activity

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 financial metrics and recent performance trends. Institutional investors typically possess greater analytical resources, and their reduced stake could be indicative of concerns about the company’s near-term prospects.

Comparative Performance and Market Position

Reliance Infrastructure Ltd has underperformed not only the Sensex but also the BSE500 index over multiple time frames, including the last three years, one year, and three months. This consistent underperformance highlights the stock’s relative weakness within the broader market and its sector.

Mojo Score and Rating Update

MarketsMOJO assigns Reliance Infrastructure Ltd a Mojo Score of 26.0, categorising it as a Strong Sell. This rating was upgraded from a Sell to Strong Sell on 5 Feb 2026, reflecting a deterioration in the company’s fundamental and market indicators. The Market Cap Grade stands at 3, indicating a relatively modest market capitalisation within its sector.

The downgrade to Strong Sell is driven by the company’s weak long-term fundamental strength, with an average ROCE of just 4.58%, and its limited capacity to service debt given the high leverage ratios. These factors contribute to the cautious stance reflected in the Mojo Grade.

Summary of Key Concerns

The stock’s fall to Rs.110.5, its 52-week low, is underpinned by several factors: a sustained decline in share price over recent sessions, underperformance relative to sector and benchmark indices, weak profitability metrics, and reduced institutional investor participation. The company’s financial results reveal significant declines in profit and sales, while leverage ratios remain elevated, constraining financial flexibility.

Despite a very attractive valuation on certain metrics, the overall market sentiment and fundamental indicators have led to a cautious outlook on the stock’s near-term performance.

Market and Sector Overview

The power sector, in which Reliance Infrastructure Ltd operates, has experienced mixed performance in recent months. While the broader market indices have shown resilience, individual stocks within the sector have faced varied fortunes. Reliance Infrastructure Ltd’s current valuation discount relative to peers suggests a divergence in market perception and company-specific challenges.

Technical Indicators and Moving Averages

Technically, the stock’s position below all major moving averages signals a bearish trend. The 5-day, 20-day, 50-day, 100-day, and 200-day moving averages all lie above the current price level, indicating persistent downward pressure. This technical setup often reflects investor caution and can influence trading behaviour in the short term.

Conclusion

Reliance Infrastructure Ltd’s decline to a 52-week low of Rs.110.5 encapsulates a period of sustained underperformance amid challenging financial metrics and market conditions. The company’s weak profitability, high leverage, and reduced institutional interest have contributed to this trend. While valuation metrics indicate some attractiveness, the overall market response remains subdued, as reflected in the recent downgrade to a Strong Sell rating by MarketsMOJO.

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