The share of Reliance Industries Limited (RIL) plunged more than 8 per cent in the first-day trade of the week amidst its second-quarter earning showing a drop in revenues in nearly all the segments.

The country's most valuable company RIL on Friday announced its September quarter results after the market was closed. The company reported a profit of Rs 9,567 crore in the second quarter of the year, a 15 per cent decrease from the same quarter last year.

Lowest share price in three months

The quarterly result severely impacted the company's share on Dalal Street on Monday which tanked 8.69% to close at Rs. 1876 per share. At the time of opening the market, the share stood at Rs. 2027. Notably, the share price is hovering at the lowest price in more than three months. The fall wiped off $ 5 billion from its owner Mukesh Ambani's net worth.

Reliance industries
Reliance industries

Mixed rating by brokerage houses

Brokerage houses have mixed sentiments on RIL share's performance. Macquarie has predicted a 42% fall in RIL shares. The brokerage house said that the stock will underperform from here and may tank to Rs 1,195. It will go down by about 42% from Friday's level. Edelweiss and MK Global, however, have a share target of Rs 2,105 and Rs 1,970. Both have advised holding its share. 

Oil business dragging RIL's revenue

The oil refining unit of Reliance has undergone a fall in demand for transportation fuels, with Covid-19 causing people to stay home. In the midst of a transformation led by Ambani, 63, the conglomerate seeks to turn the oil-and-petrochemicals giant into a technology and digital services firm by strengthening its telecommunications and e-commerce firms.

Mukesh Ambani
RIL Chairman Mukesh AmbaniIANS

As per a report in Bloomberg, the Q2 results are in line with Ambani's plan to reduce its reliance on the energy sector and raise companies seeking to exploit the billion-plus consumers in India. The gross refining margin of dependence — or benefit from refining a barrel of crude oil into fuels — dropped in the latest quarter to $5.7 per barrel compared to $9.4 a year earlier in the local and international markets.