Mukesh Ambani’s Reliance Industries giving negative returns for first time in a decade; what it means for…

The poor performance of Reliance Industries has also adversely affected the personal wealth of its Chairman, Mukesh Ambani, whose net worth has dropped to $98.3 billion, as of December 18, 2024.

For the first time in nearly a decade, billionaire Mukesh Ambani-led Reliance Industries Limited (RIL), India’s most valuable company, is poised to give negative returns to its investors as the conglomerate winds up the year which saw its stock struggle at the market for a major portion, resulting in a massive Rs 4.4 lakh crore drop in its market cap which had peaked in July 2024.

According to market analysts, Reliance has witnessed a slow growth rate in the past 6-7 years, the cumulative effect is now showing in the gradual decline of it share prices, which have slumped almost 21 percent from an all-time high of Rs 1,608.95.

The Mukesh Ambani-led conglomerate, which had given a whopping 70.55 percent return to its investors in 2017, has witnessed a gradual decline ever since, giving 19.32 percent returns in 2021, 7.60 per cent in 2022, and just 1.44 per cent in 2023. Now, at the end of 2024, the company is set to give negative returns to investors for the first time since 2014.

Analysts say that the growth of Reliance has been further weighed down due to slower earnings amid a challenging economic environment including rising costs, capital expenditure, and a vigorous competition.

Reliance Retail, the retailing arm of Reliance Industries, led by Mukesh Ambani’s daughter Isha Ambani, has faced significant challenges in 2024 due a weaker demand in the fashion space which choked its revenue growth. In 2024, slow returns forced Reliance Retail to shutter 1,185 stores across the country.

As per market experts, the rapid growth of quick commerce platforms have eaten up a chunk of Reliance Retail’s market share in the retail space.

The poor performance of Reliance Industries has also adversely affected the personal wealth of its Chairman, Mukesh Ambani, whose net worth has dropped to $98.3 billion, as of December 18, 2024, according to Forbes Real Time Billionaires List. Ambani, the richest person in Asia, and 18th richest in the world, had a net worth of $120.8 billion in July 2024.