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Reliance Industries: Navigating Retail and Refining Challenges
Reliance Industries is tackling two significant challenges impacting its performance. The first challenge, a rebound in refining margins, signals a shift in market dynamics, while sluggish retail growth poses a more unpredictable hurdle, according to a JP Morgan report.
Reliance’s stock has fallen 22% from its July peak as the NIFTY index dipped just 3.3%, erasing earlier gains. Despite this, its relative market valuations remain attractive amid generally high market pricing.
The company, led by Mukesh Ambani, leverages its oil-to-chemical unit, telecom arm Jio, and retail sector, now constituting 50% of its 2023-24 EBITDA. A potential listing of Jio/retail could be delayed due to market conditions.
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