Tuesday, 14 November 2017

ADAG stocks fall: RCom, Reliance Nippon Life at fresh lows

The lenders to Reliance Communications are meeting next week to discuss its future, after its two lifeline deals - a merger with Aircel and the sale of towers - collapsed


STOCK MARKET - Three stocks from the Anil Ambani controlled Reliance Group companies – Reliance Communications (RCom), Reliance Home Finance and Reliance Nippon Life Asset Management  – have hit their respective new lows and Reliance Naval and Engineering hit 52-week low on the BSE in intra-day trade.

RCom touched a new low of Rs 11.35, down 6%, extending its Monday’s 14% decline, after the company posted a consolidated loss of Rs 2,709 crore in the second quarter ended September. This is the fourth straight quarter of loss for the company. It had reported a loss of Rs 1,234 crore in the first quarter ended June.

For the first half (April to September) of the current financial year 2017-18 (FY18), RCom has reported a consolidated net loss of Rs 3,919 crore against a net profit of Rs 152 crore in the same period of FY17. Revenue from operations declined 41% to Rs 6,109 crore from Rs 10,359 crore. The company in a results note said that it has missed interest payments on two outstanding domestic non-convertible debentures.

Reliance Nippon Life Asset Management (down 4.5% at Rs 273) and Reliance Home Finance (down 2.6% at Rs 72) were trading at their lowest since listing on November 6, 2017 and September 22, respectively.

Reliance Nippon Life Asset Management had raised Rs 1,540 crore through initial public offer (IPO) by issuing shares at price of Rs 252 per share.

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