Stocks of this Anil Ambani-led company jumped approximately 3 percent in Monday’s trading session after a well-known ace investor based in India bought a fresh stake in the company during the quarter ended March 2024. In the past year, the company’s stock has gained nearly 25 percent for its holders.
With a market capitalization of Rs 7,651.27 crores, the stocks of Reliance Infrastructure Limited opened their trading hour on Monday at Rs 198.85 and currently trades at Rs 194, gaining around 3 percent compared to the previous closing levels of Rs 188.70 apiece.
Such bullish share price movements are observed today after Mr. Vijay Kedia, one of the well-known ace investors based in India, bought a fresh stake in Reliance Infrastructure Limited by subscribing to the shares through his entity, i.e., “Kedia Securities Private Limited”.
According to the latest data available, the ace investor bought 40 lakh equity shares equivalent to a 1.01 percent stake in the company.
During the recent financial quarters, the company’s basic business indicators, viz, its operating revenues as well as after-tax profits, showed underperforming numbers.
The former reduced from Rs 7,171 crores during Q2FY24 to Rs 4,657 crores during Q3FY24, and the latter, during the same period, magnified its losses from Rs (182) crores to Rs (301) crores.
Due to the underperformance mentioned above, the net profit margin and the return on equity (RoE) were reported at negative numbers with the former reported at (11.97) percent and the latter at (34.66) percent.
Incorporated in 1929, Reliance Infrastructure Limited is a Mumbai-based infra company that generates, transmits, and distributes electrical power to industrial, commercial, residential, and other consumers in India.
It operates through three segments, viz, ‘Engineering and Construction’ (E&C), ‘Power’, and ‘Infrastructure’. In addition, the company also manufactures cement and defense systems, develops real estate property, and offers urban transport systems.
Written by Amit Madnani
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