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Reliance Industries, led by Asia's wealthiest individual Mukesh Ambani, experienced a significant decline in its market capitalization during the second quarter of the current fiscal year. The company's market value plummeted by a staggering $50 billion (approximately Rs 4.2 lakh crore) since its peak in July 2024, marking a substantial setback for the conglomerate.
Market experts attribute this sharp decline to the challenging financial environment faced by Reliance Industries. The company, which operates across diverse sectors ranging from oil refining to retail and telecommunications, has grappled with declining profitability and financial difficulties. This has been reflected in the sluggish performance of Reliance Industries' stock, which has fallen short of the benchmark NSE Nifty 50 Index, the largest gap in nearly a decade.
The recent underwhelming performance of Reliance Industries, particularly its oil-to-chemicals sector, has further amplified the concerns. This sector has been impacted by weak demand conditions, leading to the company underperforming consensus earnings projections for the sixth consecutive quarter. The combined effect of these factors has resulted in the substantial loss in market value, estimated at Rs 4.2 lakh crore.
The decline in Reliance Industries' market capitalization has also had a direct impact on Mukesh Ambani's personal wealth. Once ranked 11th on the global rich list, Ambani has slipped to the 17th position on the Bloomberg Billionaires Index. His net worth has contracted to $100 billion, raising concerns about his position in the coveted $100 billion club if the current trend persists.
While Forbes reports Ambani's real-time net worth as $102.5 billion on November 8, 2024, the recent market performance of Reliance Industries indicates a challenging period for the company and its chairman. The future trajectory of the conglomerate will depend on its ability to navigate these financial hurdles and improve its performance in the coming quarters.
Source: Bad news for Mukesh Ambani as Reliance Industries market cap dips by Rs 420000000000 because of…