Shares of Reliance Industries Ltd (RIL) have fallen 17.9% since May, with the index heavyweight coming under heavy selling pressure. The stock fell 3.48% on Monday to close at ₹1,143.00 on the BSE.
In May, the RIL stock fell 4.46%, followed by a 5.85% decline in June, and a 6.87% drop in July. This, despite the stock featuring on the radar of buyers from the start of this year. Since January, RIL has risen 2% thanks to a 10.68% gain in March—its biggest monthly increase this year.
In a report released on Monday, Credit Suisse downgraded the stock to underperform from neutral and slashed its target price. The brokerage said given RIL has been free cash flow (FCF) negative for six years and given margin pressure in refining and petrochemical (high supply), FCF is likely to be negative for FY20-21.
