In a financial world often defined by unpredictable twists, one stock is now capturing attention with its dramatic turnaround. Following an enormous decline of about 99%, Anil Ambani's Reliance Infrastructure is currently in the news.
Back in August 2008, Reliance Infra’s stock was valued at a staggering Rs 2,500. However, by January 2020, it had dropped to a dismal Rs 25. Now, after years of recession, the stock is making waves. Over the past five days, it has surged by 13%, and recent trading sessions saw the price soar to Rs 205. On Wednesday, it continued its ascent, closing at Rs 207, marking a 2.85% rise from the previous day.
The remarkable resurgence follows predictions by market analysts who had forecasted the stock might cross the Rs 200 mark. Jigar S Patel, a senior analyst at Anand Rathi, had anticipated that Reliance Infra’s stock could reach this level, provided it overcame certain resistance points. His projections are now materialising as the stock's market cap rises to Rs 8,200 crore.
What makes this rebound extraordinary is the stock’s history. On January 4, 2008, Reliance Infra's stock price was Rs 2,514. By January 10, 2020, it had nearly vanished to Rs 24.90. The recent surge represents not just a recovery but a substantial profit for long-term investors. Over five years, the stock has delivered a staggering return of 306.49%, turning every Rs 1 lakh invested in August 2019 into Rs 4 lakh today.
Investors who bought the stock five years ago have seen their investments quadruple.
