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Reliance Industries Ltd (RIL) lost more than $11 billion in market value on Monday as the stock sank to a near four-month low, after the company reported a 15% drop in quarterly net profit amid lower refining margin, as well as weak retail and telecom operations.

At closing, the stock settled at 1,877.30 on BSE—a level last seen on 16 July, down 8.62%—the biggest decline since 23 March. During the day, the stock fell as much as 9.46%. Shares of RIL have risen 25% so far this year. The fall has eroded $6.8 billion from RIL chairman Mukesh Ambani’s net worth, and pushed him down to 9th place from 6th on the world’s rich list, according to Forbes real time Billionaires Index. His net worth now stands at $71.5 billion.

With Monday’s plunge, RIL’s market value has fallen to 12.69 trillion from its previous close of 13.52 trillion. During the September quarter, RIL’s revenue fell 24% from the year earlier to 1.16 trillion. Net profit declined 15% year-on-year (y-o-y) to 9,567 crore. Operating profit fell 16.2% y-o-y to 18,945 crore.

Reliance Jio Infocomm Ltd improved its user base to 405.6 million as of end-September from 398.3 million as of end-June but its average revenue per user or Arpu, a key measure of profitability, saw only a modest improvement to 145 from 140.3 quarter-on-quarter. Jio’s Arpu was at a discount to rival Bharti Airtel Ltd’s 162 in the September quarter.

Macquarie Research has issued an ‘underperform’ rating with a price target of 1,195, giving the RIL scrip a downside potential of 42%. The research firm said it remains cautious as it still sees no economic moat for the company. However, it did note that RIL has reported a largely expected sequential rebound in the September quarter.

“No incremental details were provided around Jio’s postpaid plans. We believe Bharti Airtel’s Arpu will remain at a 10%-15% premium to Jio due to better quality customers. Our Jio Arpu assumption for fiscal year 21/22/23 is 145/160/172", said Macquarie Research in its note.

RIL’s retail business margin improved sequentially to 4.9% from 3.4% but lower at 5.6% y-o-y due to a drop in revenues for the fashion and lifestyle as well as consumer electronic segments. The Macquarie report said it doesn’t see an economic moat as yet for JioMart either on the B2B side where the idea is to manage inventory for the local retailers (high scale, low margins) or on the B2C side where there is already stiff competition from the likes of Amazon and Flipkart.

Further, while petrochemical refining margins improved sequentially, its gross refining margin fell to $5.7 per barrel, a level it hasn’t seen since 2009.

Brokerages currently have 24 buy calls on RIL, 7 hold and 4 sell calls, according to Bloomberg data.

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