In a volatile financial landscape, one stock has recently garnered significant attention due to its impressive turnaround. Anil Ambani’s promoted stock has surged around 28 percent in just 8 trading sessions, and Vanguard has notably increased its stake in the company.
Share Price Movement
In August 2008, Reliance Infrastructure Ltd.’s stock was valued at Rs.2,500 per share but dropped significantly to Rs.25 per share by January 2020. After years of stagnation, the stock is now gaining attention, surging over 28 percent in the past eight trading sessions to reach Rs.223.65 per share from Rs.175.15 apiece.
What happened
Reliance Infrastructure Ltd.’s share price has recently increased because Vanguard Total International Stock Index Fund and Vanguard Emerging Markets Stock Index Fund bought stakes of 1.15 percent and 1.09 percent, respectively.
This interest aligns with Reliance’s role in key infrastructure projects. As India focuses on infrastructure, Vanguard’s investment aims to tap into this growth.
Recent data shows Foreign Institutional Investors (FIIs) increased their stake from 11.77 percent in Q4FY24 to 12.37 percent in Q1FY25, while Domestic Institutional Investors (DIIs) raised their stake from 2.16 percent to 2.26 percent in the same period.
Financial Performance
Turning to the company’s financial statements, revenue saw an increase of 12 percent, rising from Rs.4,186 crore in the March quarter of FY24 to Rs.4,686 crore in the March quarter of FY25. Conversely, net losses decreased from Rs.2,484 crores to Rs.98 crores over the same period.
On a quarter-to-quarter basis, Reliance Infrastructure Ltd’s revenue from operations grew marginally by 1.03 percent from Rs.4,638 crores in Q4 FY24. Net losses also improved, decreasing from Rs.301 crores in the quarter ending December 2023.
Growth Potential
These positive financial results reflect the company’s solid performance and highlight its potential for further expansion. The Indian government’s Viksit Bharat initiative, with an allocation of Rs.11,11,111 crores marking 3.4 percent of India’s GDP, will greatly enhance Reliance Infrastructure’s growth prospects.
The company’s engagement in key sectors aligns with national development goals, positioning it advantageously.
With substantial investments directed towards road development and a project pipeline worth approximately Rs.48,000 crores, Reliance Infrastructure is well-placed to seize growing project opportunities.
Company Profile
Reliance Infrastructure Ltd. is a major player in the infrastructure sector, involved in developing projects through various Special Purpose Vehicles (SPVs) across areas such as power, roads, metro rail, airports, and the defense sector.
The company is also a key utility provider, with operations spanning the entire power value chain, including generation, transmission, distribution, and power trading.
Written by – Siddesh S Raskar
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