The stock has already fallen over 10 per cent in the last three sessions. It was down 1.77 per cent to Rs 1,905 on Wednesday and was the top drag on Nifty and Sensex.
Amazon.com Inc on Monday filed a petition in the Delhi high court, seeking imprisonment of Future group promoters, including founder Kishore Biyani, accusing them of violating securities market rules by illegally encumbering group company shares.
The e-commerce giant also requested the court to block the deal and enforce an arbitration order that stayed the Rs 24,713 crore deal.
Earlier, Dalal Street analysts were miffed over lack of transparency and underperformance on operating level.
Transparency levels are falling across businesses, said Edelweiss Securities, who noted that Reliance Industries has has stopped reporting a key matrix— gross refining margin (GRM) —altogether. The brokerage noted that the company has ceased providing division-wise turnover breakdown for retail and that RJio’s key driver FTTH lacks granularity.
“Quality of profit suffers as RIL’s investment income of Rs 78o crore overshadows core earnings growth following cash infusions,” Edelweiss said while suggesting that consumer-facing businesses RJio and retail optically contribute about half of RIL’s Ebitda, but they contribute only 29 per cent to RIL’s overall consolidated profit after tax.
Macquarie, which has been bearish on the counter for a while now, maintained its stance and sees 29 percent downside from the current levels.
“We forecast FY21 core EPS to fall 10% to Rs 60 (prev Rs 55), followed by a recovery to Rs70-80 in FY22-23 versus consensus at Rs 95-115. Our updated SOTP is Rs 1,350. RIL is today trading at a blue-sky fundamental valuation,” said Aditya Suresh and Abhinil Dahiwale, analyst at Macquaries, in a note.
Most analysts, however, are neutral to positive on the scrip with 12-month price targets in the Rs 1,900-2,450 range.