Why is Reliance Infra. falling/rising?

Sep 19 2025 09:36 PM IST
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As of 19-Sep, Reliance Infrastructure Ltd's stock price is down to 259.25, reflecting a 2.79% decline and a total loss of 4.23% over the last two days. Despite strong profit growth and a high ROCE, weak long-term fundamentals and declining investor confidence are impacting its performance.
As of 19-Sep, Reliance Infrastructure Ltd is experiencing a decline in its stock price, currently at 259.25, reflecting a decrease of 7.45 points or 2.79%. The stock has underperformed its sector by 5.27% today and has been on a consecutive downward trend for the last two days, accumulating a total loss of 4.23%. Additionally, the stock's performance over the past month shows a decline of 5.90%, while its year-to-date performance is down by 14.72%. Despite some positive indicators such as a high return on capital employed (ROCE) of 44.10% and an increase in promoter stake by 2.55%, the stock's overall performance is hindered by weak long-term fundamentals, including a high debt-to-EBITDA ratio of 14.55 times.

In the broader market context, the Sensex has shown a modest gain of 0.88% over the past week, contrasting with Reliance Infrastructure's 4.18% increase in the same period. However, the stock's year-to-date performance significantly lags behind the benchmark, which has risen by 5.74%. The recent decline in investor participation, with a notable drop in delivery volume, further suggests a lack of confidence among investors, contributing to the stock's downward movement. While the company has demonstrated strong profit growth and attractive valuations compared to peers, the combination of weak long-term fundamentals and recent performance trends indicates challenges that are currently affecting investor sentiment.
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