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Reliance Infrastructure shares took a hard knock today (July 25, 2025). After the Enforcement Directorate (ED) conducted raids linked to Anil Ambani group companies in connection with a Yes Bank loan probe, the stock nosedived 5 per cent.
But is it just panic, or is there something fundamentally broken? Let’s break it down.
Why the fall?
Here’s what triggered the sell-off:
- The ED raided premises linked to group companies as part of a probe into a Rs 3,000 crore loan fraud involving Yes Bank.
- Though Reliance Infra wasn’t the only entity under scrutiny, investor sentiment soured across the group.
- As a result, shares of both Reliance Infra and Reliance Power fell sharply, spooked by regulatory overhang.
The bottom line
Reliance Infra’s share price fall isn’t about its earnings. It’s about trust and timing. If you’re a conservative investor, it might be worth watching from the sidelines till the regulatory clouds clear. But if you’re a long-term investor who can stomach some uncertainty, this beaten-down infra stock could be worth a deeper look.
About the company
Reliance Infrastructure, part of the Anil Ambani-led Reliance Group, is a diversified player in the infrastructure space. It’s involved in power generation and distribution, metro rail, highways, airports and even defence manufacturing. Its JV with Dassault Aviation to manufacture Falcon business jets in India made news recently.
Below is a table summarising its key metrics.
| Metric | Value |
|---|---|
| Market cap | Rs 13,977 crore |
| P/E ratio | 2.8 |
| P/B ratio | 1 |
| ROE | - 19.3 per cent |
| ROCE | - 9.1 per cent |
Value Research Online ratings
- Overall: 2/5
- Quality: 2/10
- Growth: 4/10
- Valuation: 1/10
- Momentum: 9/10
Does Reliance Power deserve a spot in your portfolio?
Had you purchased shares of Reliance Power worth Rs 10,000 around five years ago, they would have been valued at over Rs 1.06 lakh today.
That said, these are short-term market movements and basing your investment decisions on short-term results or market noise can be risky. True wealth is built by staying invested for the long haul. Instead of reacting to a single quarter's results, invest with the aim of building wealth in the long term.
At Value Research Stock Advisor, our analysts cut through the noise to help you focus on what really matters – identifying long-term compounders such as Reliance Infra.
Disclaimer: This article was crafted with the aid of artificial intelligence and meticulously reviewed and edited by our human experts to ensure accuracy and provide valuable insights. It's intended for informational purposes only. We encourage you to conduct your own thorough research before making any investment decisions.
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