In a volatile financial landscape, one stock has captured the attention of investors with its extraordinary turnaround. Reliance Infrastructure, the company once headed by Anil Ambani, is experiencing a dramatic resurgence after a near-complete collapse. Back in August 2008, Reliance Infra’s stock reached a staggering Rs 2,500. However, by January 2020, the stock had plummeted to a dismal Rs 25, marking a decline of approximately 99%.
This dramatic fall led many to write off the company, but recent developments paint a different picture. Over the past five days, the stock has surged by 13%, with recent trading sessions seeing the price soar to Rs 205. On Wednesday, the stock continued its upward climb, closing at Rs 207, representing a 2.85% increase from the previous day.
This remarkable rebound is fueled by predictions from market analysts who foresaw the stock potentially crossing the Rs 200 mark. Jigar S Patel, a senior analyst at Anand Rathi, had anticipated this surge, provided the stock overcame certain resistance points. As the stock’s market cap climbs to Rs 8,200 crore, Patel’s projections are now coming to fruition.
What makes this recovery even more extraordinary is the stock’s history. On January 4, 2008, Reliance Infra’s stock price stood at Rs 2,514. Fast forward to January 10, 2020, and the stock had dwindled 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.
