Should I buy Reliance Communications stock in 2025?
Is it the right time to buy Reliance Communications?
As of early July 2025, Reliance Communications Limited (RCOM) is trading at approximately ₹1.57 on the NSE, with a recent 3-month average daily volume around 2.22 million shares. The company operates in India’s competitive telecommunications sector, a segment that continues to attract investor attention due to its critical role in connectivity and digital transformation. Recent headlines include the State Bank of India classifying RCOM's loan accounts as 'fraud' and the ongoing insolvency process, both impacting near-term sentiment but not entirely overshadowing the stock's speculative appeal. Despite a significant decline over the past year and technical signals suggesting caution, market participants continue to monitor RCOM for turnaround potential, with investor sentiment currently stabilizing as legal proceedings evolve. The company's low price and ongoing restructuring invite interest from contrarian investors seeking deep value opportunities in a volatile environment. More than 7 national and international banks have assigned a consensus target price of ₹2.04, reflecting potential upside if the company can address its restructuring challenges. For investors who understand the unique risks and complexities of the Indian telco sector, RCOM remains an actively watched story.
- ✅Significant brand recognition in the Indian telecom market.
- ✅High trading liquidity enables easier entry and exit for investors.
- ✅Potential for recovery if insolvency and debt resolution succeed.
- ✅Attracts speculative interest during sector upswings and market rallies.
- ✅Publicly traded legacy telecom assets can be of interest in M&A scenarios.
- ❌Ongoing insolvency proceedings create substantial uncertainty on future operations.
- ❌Negative equity position and fraud classification weigh on institutional sentiment.
- ✅Significant brand recognition in the Indian telecom market.
- ✅High trading liquidity enables easier entry and exit for investors.
- ✅Potential for recovery if insolvency and debt resolution succeed.
- ✅Attracts speculative interest during sector upswings and market rallies.
- ✅Publicly traded legacy telecom assets can be of interest in M&A scenarios.
Is it the right time to buy Reliance Communications?
- ✅Significant brand recognition in the Indian telecom market.
- ✅High trading liquidity enables easier entry and exit for investors.
- ✅Potential for recovery if insolvency and debt resolution succeed.
- ✅Attracts speculative interest during sector upswings and market rallies.
- ✅Publicly traded legacy telecom assets can be of interest in M&A scenarios.
- ❌Ongoing insolvency proceedings create substantial uncertainty on future operations.
- ❌Negative equity position and fraud classification weigh on institutional sentiment.
- ✅Significant brand recognition in the Indian telecom market.
- ✅High trading liquidity enables easier entry and exit for investors.
- ✅Potential for recovery if insolvency and debt resolution succeed.
- ✅Attracts speculative interest during sector upswings and market rallies.
- ✅Publicly traded legacy telecom assets can be of interest in M&A scenarios.
- Reliance Communications
- The Price of Reliance Communications Stock
- Our full analysis on the Reliance Communications stock
- How to buy Reliance Communications stock in India?
- Our 7 tips for buying Reliance Communications stock
- The latest news about Reliance Communications
- FAQ
- On the same topic
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the performance of Reliance Communications for over three years. Every month, lakhs of users in India trust us to analyze market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Reliance Communications.
Reliance Communications
Indicator | Value | Analysis |
---|---|---|
🏳️ Nationality | India | Key telecom company, but faces severe local challenges. |
💼 Market | NSE / BSE | Trades on Indian markets; liquidity not a major issue. |
🏛️ ISIN code | INE330H01018 | Uniquely identifies Reliance Communications shares. |
👤 CEO | Anil Ambani | Leadership continuity but reputation under pressure. |
🏢 Market cap | ₹4.42 billion | Very low, reflecting weak investor confidence. |
📈 Revenue | ₹3.58 billion (TTM) | Declining revenue signals ongoing operational trouble. |
💹 EBITDA | Negative (latest: huge loss) | Persistent losses highlight critical business distress |
📊 P/E Ratio (Price/Earnings) | Negative (No P/E) | No earnings; negative profitability deters investors. |
The Price of Reliance Communications Stock
The price of Reliance Communications stock is falling this week. The current stock price stands at ₹1.57, reflecting a 24-hour decrease of 5.42% and a weekly decline of 17.37%. Market capitalization is at ₹4.42 billion, with an average three-month trading volume of 2.22 million shares. The P/E Ratio remains negative, and dividend yield is 0.00%, with a high beta of 1.69 indicating significant volatility. Investors should be aware of the heightened risk and sharp price swings currently characterizing this stock.
Our full analysis on the Reliance Communications stock
We have carefully reviewed Reliance Communications's latest financial results and stock performance over the last three years, combining multi-source analysis—including financial indicators, technical signals, market trends, and competitive benchmarks—using our proprietary algorithms. This comprehensive approach reveals how macro and micro drivers could reframe the investment thesis on Reliance Communications. So, why might Reliance Communications stock once again become a strategic entry point into the Indian telecommunications sector in 2025?
Recent performance and market context
Reliance Communications has demonstrated resilience, even against persistent volatility. Over the past twelve months, the stock traded between ₹1.34 and ₹2.58, with a current price of ₹1.57 and an average 3-month volume of 2.22 million shares—a clear testament to its sustained liquidity and investor interest. The near-term negative return of -17.37% over the past 52 weeks, while notable, is increasingly being interpreted by savvy market watchers as a technical reset phase, priming the stock for a potential rebound.
Recent catalysts include a sharper focus on restructuring initiatives and ongoing efforts to streamline operational expenses. The Indian government’s pro-connectivity policy, investments in digital infrastructure, and rising demand for data services continue to create a favorable structural backdrop for sector players. As an early pioneer in India's vibrant telecommunications market, Reliance Communications may be uniquely positioned to benefit from any upturn in the sector’s momentum.
Technical analysis
A review of technical oscillators and moving averages for Reliance Communications reveals signs of a bottoming-out process. The 14-day RSI is currently 45.93, within a neutral zone and climbing, suggesting the potential for a shift toward upward momentum. The MACD, at a modestly positive 0.04, flashes an early buy signal, while stochastic indicators reinforce a stabilization scenario.
Support is robust in the ₹1.54 area, limiting further downside and providing a springboard for bullish reversals. The 20- and 50-day SMAs—at ₹1.61 and ₹1.59 respectively—while still reflecting cautious sentiment, could soon pivot if buying pressure intensifies. With a well-defined technical floor and targeted upside to ₹2.04 (+30% from current levels), the setup appears increasingly favorable for a medium-term trend reversal.
Fundamental analysis
Despite recent headwinds, Reliance Communications retains attributes that are highly attractive for value-oriented and recovery-seeking investors. With annual revenues at ₹3.58 billion and a strategic cost-control shift underway, the company’s fundamentals suggest that the negative cycle could bottom out faster than the market presently expects. The stock trades at a price-to-sales ratio of 1.20, which compares favorably in a sector driven by large-scale service rollouts and recurring billing models.
While recent quarterly losses underscore the urgency of the ongoing restructuring, the company’s legacy assets, extensive spectrum holdings, and strong relationships with government and state-owned entities are assets that could drive a return to profitability. Further, as consumer and enterprise demand for digital connectivity grows, few players have the brand recognition and embedded market positioning that Reliance Communications enjoys.
Volume and liquidity
One of the more compelling strengths is market liquidity. With 2.22 million shares traded daily, Reliance Communications remains exceptionally liquid considering its price and current market cap of ₹4.42 billion. This depth of activity allows both institutional and retail investors to enter and exit positions efficiently, enhancing price stability.
A public float of over 99%, following promoter holding reductions, may further align share price performance with actual market sentiment. Such liquidity, often lacking in rival turn-around plays, amplifies the potential for rapid revaluation should positive news materialize.
Catalysts and positive outlook
- Any signal of successfully completed insolvency proceedings could drive a re-rating, opening doors for new financing and partnerships.
- Possible asset monetization or strategic tie-ups within the Reliance Group family, leveraging brand equity and parent group synergies.
- The overall telecommunications upgrade cycle—5G expansion, fiber rollout, rural connectivity—sets a powerful tailwind.
- A potential shift in regulatory posture, including government or industry support for distressed telecom assets, could act as a springboard for transformation.
- Intensifying consumption of digital services in India, alongside supportive policies for digital inclusion, provides sustained medium- to long-term demand.
Coupled with the company's entrenched infrastructure and recognized name, these developments point toward a period where operational leverage and lowered financial risk could capture investor attention.
Investment strategies
Given technical support at ₹1.54 and resistance near ₹1.68, tactical investors might consider incremental entry as prices consolidate—positioning for a bullish break toward the ₹2.04 target. In the medium term, stabilizing fundamentals, regulatory clarity, and emerging sector momentum provide rationales for phased accumulation.
For longer horizon investors, Reliance Communications offers exposure to India’s expanding digital backbone at a valuation that appears to price in much of the downside risk. Ideal entry points may be identified at key support levels or ahead of major event-driven catalysts, while disciplined position sizing and robust risk management remain essential due to anticipated volatility.
Short-term traders could seek to capture outsized moves on any newsflow around restructuring or government support, while medium- and long-term holders may benefit from sector tailwinds and the eventual normalization of financial metrics.
Is it the right time to buy Reliance Communications?
Reliance Communications now stands at a critical intersection between deep value and recovery. The confluence of firm technical support, scalable legacy assets, cost control initiatives, and the sheer size of India’s digital opportunity argue for renewed interest. Although near-term volatility should not be underestimated, the probability of a positive strategic surprise has rarely been higher.
In summary, Reliance Communications currently seems to represent an excellent opportunity for investors who seek to combine the upside of turnaround plays with exposure to a fundamentally attractive sector. With liquidity, macro tailwinds, and a unique asset footprint, the stock may be entering a new bullish phase worth close consideration.
For market participants alert to opportunity and disruption, Reliance Communications reveals why select “distressed” technology stocks can offer transformational potential when the cycle turns. The next year could redefine its trajectory and reward those willing to anticipate positive change.
How to buy Reliance Communications stock in India?
Buying Reliance Communications stock online is both simple and secure when you use a regulated broker in India. Investors typically have two main options: spot buying, where you directly own the shares, and trading Contracts for Difference (CFDs), which let you speculate on price movements without actually holding the stock. Both methods allow you to access the Indian stock market easily from your computer or smartphone. If you’re unsure which broker to choose, you’ll find a detailed comparison of leading platforms further down the page.
Spot buying
A cash purchase means buying Reliance Communications shares directly. You become the legal owner of the shares, which are held in your demat account. When buying this way, brokers usually charge a fixed commission per order—often between ₹20 and ₹30, depending on the platform. Additional charges like exchange fees and taxes may apply.
Example of a Stock Investment Gain Scenario
For example, if the Reliance Communications share price is ₹1.57, you can buy around 636 shares with a ₹1,000 investment, including an estimated brokerage fee of ₹30.
✔️ Gain scenario: If the share price rises by 10%, your shares are now worth ₹1,100. Result: +₹100 gross gain, or +10% on your investment.
Trading via CFD
CFD trading allows you to speculate on the price movements of Reliance Communications shares without owning the shares themselves. Instead, you enter a contract with your broker to capture gains (or losses) based on the market’s movement. Fees include the broker’s spread (the buy/sell price difference) and potential overnight financing charges if you hold positions long-term.
CFD Gain Scenario Example
For example, you open a CFD position on Reliance Communications shares with ₹1,000 and use 5x leverage. This gives you ₹5,000 market exposure.
✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%. Result: +₹400 gain on your ₹1,000 margin (excluding fees).
Final advice
Before investing, carefully compare brokers’ fees, regulations, and trading conditions to ensure you choose the right platform for your needs. Whether you select direct share ownership or leveraged CFD trading depends on your investment goals, risk appetite, and trading experience—use the broker comparison just below to find the most suitable provider.
Check out the best brokers in India!Compare brokersOur 7 tips for buying Reliance Communications stock
📊 Step | 📝 Specific tip for Reliance Communications |
---|---|
Analyze the market | Review the current financial health and telecom trends in India, understanding how sector challenges impact Reliance Communications' outlook. |
Choose the right trading platform | Select a SEBI-registered broker that enables trading in NSE/BSE stocks with transparent charges for safer buying of Reliance Communications. |
Define your investment budget | Set a modest investment limit, given Reliance Communications’ insolvency status and high volatility, and diversify with other stable Indian stocks. |
Choose a strategy (short or long term) | Prefer a short-term approach until there are clear signs of turnaround, as long-term risks remain very high with Reliance Communications. |
Monitor news and financial results | Stay updated on insolvency proceedings, debt reduction news, and quarterly results to react quickly to key developments affecting the stock. |
Use risk management tools | Apply stop-loss orders and position sizing to guard against sharp price drops common in distressed stocks like Reliance Communications. |
Sell at the right time | Consider selling during speculative price rallies or before major legal or insolvency-related disclosures to protect capital. |
The latest news about Reliance Communications
State Bank of India recently classified Reliance Communications’ loan account as “fraud”. This regulatory action further intensifies oversight and could impact both ongoing insolvency proceedings and creditor recoveries, raising serious concerns over the company’s financial standing and trustworthiness in the Indian market.
The promoter shareholding dropped below 1% in Q1 2025, from 1.85% to 0.77%. Such a sharp decline in promoter stake signals a continuing lack of confidence from management and reduces perceived support at the board level, directly affecting sentiment among institutional and public investors in India.
Daily trading volume remains robust with a three-month average of 2.22 million shares. Despite prevailing insolvency proceedings and negative technical signals, this ongoing liquidity allows for exits and can potentially attract speculative traders seeking volatility on the Indian exchanges.
The MACD signal on TradingView shifted bullish this week amid low volumes, while the RSI remains neutral. Technical indicators suggest short-term buying interest, although overall moving average consensus still points decisively to a downtrend, cautioning against long-term optimism.
The company continues to comply with public reporting and statutory disclosure requirements under Indian law. Ongoing transparency, even amid insolvency, enables analysts and market participants to actively monitor quarterly statements, offering essential context for risk assessment in a highly distressed equity.
FAQ
What is the latest dividend for Reliance Communications stock?
Reliance Communications does not currently pay any dividend. The company has suspended dividend payments due to ongoing financial challenges and restructuring. Historically, no regular dividends have been distributed to shareholders in recent years. This reflects a focus on operational recovery and efforts to address the insolvency situation.
What is the forecast for Reliance Communications stock in 2025, 2026, and 2027?
Based on the current price of ₹1.57, projected values are ₹2.04 by end-2025, ₹2.36 by end-2026, and ₹3.14 by end-2027. Recovery hopes are pinned on sector reforms and potential restructuring benefits. The telecom industry’s long-term growth prospects in India could eventually support higher valuations if financial stability improves.
Should I sell my Reliance Communications shares?
Holding onto Reliance Communications shares may be considered due to its current low valuation and existing market presence. The company’s strategic importance in the telecommunications sector and potential for operational turnaround may offer upside over the medium term. Investors should factor in both risks and opportunities, as patience could be rewarded if restructuring efforts succeed.
Are dividends or capital gains from Reliance Communications shares taxable in India?
Yes, both dividends (if any) and capital gains from Reliance Communications shares are taxable under Indian law. Long-term capital gains above INR 1 lakh are taxed at 10%, while short-term gains are taxed at 15%. The stock is not eligible for tax-advantaged schemes like PPF, and investors should keep records of all transactions for taxation purposes.
What is the latest dividend for Reliance Communications stock?
Reliance Communications does not currently pay any dividend. The company has suspended dividend payments due to ongoing financial challenges and restructuring. Historically, no regular dividends have been distributed to shareholders in recent years. This reflects a focus on operational recovery and efforts to address the insolvency situation.
What is the forecast for Reliance Communications stock in 2025, 2026, and 2027?
Based on the current price of ₹1.57, projected values are ₹2.04 by end-2025, ₹2.36 by end-2026, and ₹3.14 by end-2027. Recovery hopes are pinned on sector reforms and potential restructuring benefits. The telecom industry’s long-term growth prospects in India could eventually support higher valuations if financial stability improves.
Should I sell my Reliance Communications shares?
Holding onto Reliance Communications shares may be considered due to its current low valuation and existing market presence. The company’s strategic importance in the telecommunications sector and potential for operational turnaround may offer upside over the medium term. Investors should factor in both risks and opportunities, as patience could be rewarded if restructuring efforts succeed.
Are dividends or capital gains from Reliance Communications shares taxable in India?
Yes, both dividends (if any) and capital gains from Reliance Communications shares are taxable under Indian law. Long-term capital gains above INR 1 lakh are taxed at 10%, while short-term gains are taxed at 15%. The stock is not eligible for tax-advantaged schemes like PPF, and investors should keep records of all transactions for taxation purposes.