Should I Buy Reliance Communications Stock in 2025? Analysis for Indian Investors

What is Reliance Communications?

How much is Reliance Communications stock?

The price of Reliance Communications stock is rising this week. The current stock price stands at ₹1.55, with a 24-hour change of -0.01 (down 0.64%), while the weekly change shows an increase of 5.44%. Market capitalization is at ₹431 crore, and the average trading volume over the past three months is 7,626,302 shares. The P/E ratio is not available due to negative earnings, and the stock does not offer any dividend yield, while the beta is currently unreported because of insolvency status.

Important Information

Investors should be aware that high trading activity combines with extreme volatility driven by the ongoing insolvency process, making this stock a speculative and risky proposition in the Indian market.

Our full analysis on Reliance Communications stock

Having thoroughly reviewed Reliance Communications’ (RCOM) latest financial results and its stock action over the past three years, our analysis draws from a sophisticated blend of financial indicators, technical signals, market data, and competitive context—integrated via our proprietary valuation and signal algorithms. In this report, we examine RCOM from a buy-side perspective, identifying where structural shifts, market sentiment, and unfolding catalysts might support a fresh look at this storied telecommunications player. So, why might Reliance Communications stock once again become a strategic entry point into the Indian telecom sector in 2025?

Recent Performance and Market Context

Despite operating under insolvency for several years, Reliance Communications’ stock has demonstrated a resilience that few anticipated. Trading at ₹1.55 as of May 19, 2025, RCOM has gained 5.44% over the past week—an impressive spurt considering its 6-month and one-year downtrends (-15.76% and -6.06% respectively). This short-term resurgence reflects renewed investor attention amid ongoing insolvency proceedings and an increasingly active secondary market for distressed telecom assets.

Several events have injected momentum into RCOM’s trading:

• Progress on Insolvency Resolution: The 58th Committee of Creditors meeting held in May 2025 signals real engagement in the asset resolution process, reigniting interest among value-seeking buyers.
• Asset Sales: The historic sale of assets to Reliance Jio (₹3,720 crore), and the striking off of loss-making overseas subsidiaries, have streamlined the company’s operational focus.
• Management Restructuring: The recent resignation of a key director reflects a continued evolution in leadership—often a precursor to major strategic decisions.

Zooming out, the sector backdrop remains favorable for opportunistic plays in telecom. India’s digital infrastructure demand is soaring, and consolidation among players has made legacy spectrum and infrastructure assets newly strategic, setting the stage for restructuring stories like RCOM’s to attract speculative—and sometimes transformational—interest.

Technical Analysis

RCOM’s technical picture reveals signs of base formation and potential bullish momentum:

• Moving Averages: The 20-day simple moving average (SMA) at ₹1.54 is now providing immediate support, suggesting a short-term bullish tilt. The longer-term SMAs (50, 100, and 200 day) sit above the current price, indicating RCOM remains in a structural downtrend, but a breakout over ₹1.60 (50-day SMA) could be an early confirmation of a medium-term reversal.
• Indicators: The Relative Strength Index (RSI) is at 50.89—right at the neutral threshold—implying neither overbought nor oversold conditions. The MACD has just turned positive (0.02), a classical early-bullish sign, while the Stochastic RSI reads 97.32, reflecting a potential for short-term retracement but also underlining the presence of strong price action.
• Support and Resistance: Immediate support lies at ₹1.50, a level that has repeatedly attracted buyers. On the upside, resistance at ₹1.60 and ₹1.65 will be pivotal; a clean break could draw fresh attention from technical traders.

Momentum is building, and although the ADX (17.57) suggests trend strength is still modest, technical structure supports the thesis that RCOM is transitioning from a bearish phase to one of speculative recovery—a classic bottom-fishing scenario for aggressive market participants.

Fundamental Analysis

On fundamental metrics, RCOM’s story is defined by distress—but therein lies the speculative opportunity for investors seeking deep-value, event-driven plays:

• Revenue and Profitability: While revenue has declined to ₹364 crore TTM (with the last quarter showing a 7.45% sequential drop), the company’s leaner cost base and divestment strategy could enable faster break-even in certain verticals or under new ownership.
• Valuation Metrics: Conventional ratios paint a picture of extreme distress. Negative P/E and book value (-₹313/share) confirm a balance sheet under severe pressure. Nevertheless, these headline negatives have historically set the stage for the sorts of multi-bagger recoveries seen in global distressed asset cycles, should a successful resolution unfold.
• Strategic Advantages: Despite the challenges, RCOM retains:
• Significant spectrum holdings, fiber infrastructure, and enterprise contracts
• Institutional memory and legacy brand recognition—no minor factor in an industry undergoing horizontal and vertical integration
• Exposure to potential recovery and turnaround scenarios, especially if strategic buyers or global funds engage

The fundamentals, while challenged, clearly present a classic “mean reversion” opportunity for investors faith in asset resolution or sectoral re-rating.

Volume and Liquidity

Market liquidity remains robust for RCOM, a testament to continued interest:

• Sustained Volumes: The 3-month average daily volume is 7.63 million shares, with daily trading still exceeding 860,000 shares. Such activity points to persistent speculative attention and sufficient liquidity for both retail and tactical institutional investors.
• Market Confidence: High float (public holding is 93.96%) creates a dynamic trading environment, facilitating price discovery and enabling aggressive position sizing for those tracking the unfolding insolvency drama.

This level of liquidity frequently precedes dynamic valuation shifts, especially when news flow intensifies around insolvency resolution or asset recovery scenarios.

Catalysts and Positive Outlook

RCOM’s near-term and structural outlook is underpinned by several bullish catalysts:

• Imminent Resolution Events: The progress of the Corporate Insolvency Resolution Process (CIRP), with multiple committees of creditors engaged and possible bids being considered, positions RCOM as a front-runner for sudden, significant revaluation—typical in distressed asset cycles.
• Potential Strategic Restructuring: Interest from major players, and the precedent set by Reliance Jio’s earlier asset purchases, suggest that further asset monetization or company-wide restructuring is feasible. Success here could see shares re-rate sharply.
• Regulatory and Sector Tailwinds: Ongoing government digitalization initiatives and pro-restructuring regulation (NCLT oversight, clear bankruptcy code) enhance the probability of value realization for legacy telecom assets.
• Operational Streamlining: Exit from non-core foreign subsidiaries and simplification of the asset base improve transparency and focus, often welcomed by risk arbitrage and event-driven investors.
• Speculative Upcycle in Penny Stocks: Within the broader Indian market, renewed appetite for deep-value “turnaround” names could compound short-term gains as liquidity chases high-beta opportunities—RCOM’s profile is uniquely suited to this narrative.

Investment Strategies

Given RCOM’s technical and fundamental profile, an array of investment strategies merit consideration—always with the understanding of heightened risk:

• Short-Term Trading: For those closely tracking the news cycle, entering positions near the ₹1.50 support level and targeting an initial move to ₹1.65–₹1.70 could prove timely, particularly if CIRP news or bidder interest breaks.
• Medium-Term Positioning: Holding through to a potential insolvency outcome or creditor agreement offers the prospect of asymmetric reward should a favorable asset sale or resolution plan materialize. Volatility is to be expected, but intermediate bullish technical signals point to constructive accumulation on dips.
• Long-Term Speculation: Investors with a higher risk appetite can view RCOM as a “call option” on Indian telecom restructuring. Successful resolution—however unlikely on fundamentals alone—could see significant price re-rating from current levels on absolute and relative terms. Accumulating ahead of key legal or creditor decision dates maximizes opportunity for sudden value unlock.
• Anchoring on Technical Lows: Building exposure near technical or psychological lows (₹1.40–₹1.50) offers disciplined risk management amid a highly volatile trading environment, while preserving upside to any positive surprises.

Each approach is best suited for experienced participants who are comfortable with the unique volatility and news-driven moves characteristic of high-profile distressed stocks.

Is it the Right Time to Buy Reliance Communications?

Reliance Communications’ investment thesis is shaped by its special situation status—making it a standout in a market often dominated by conventional growth and dividend stories. Key strengths currently supporting a positive view include:

• Consistent short-term price momentum and robust trading liquidity
• Progress within the insolvency proceedings, with asset sales providing episodic upside catalysts
• A supportive macro and regulatory setting favoring restructurings in Indian telecom
• The precedents of successful asset monetizations stirring renewed speculative interest
• Attractive entry points near historic technical supports, maximizing risk/reward for event-driven strategies

While the risks remain substantial, the convergence of speculative volume, event catalysts, and improved sentiment in the broader Indian capital markets combine to justify a new look at Reliance Communications. For seasoned investors with an appetite for turnaround situations, the stock’s fundamentals and technicals seem to represent an excellent opportunity to participate in a potential value recovery scenario as the company navigates its final stages of asset and creditor resolution.

As always, a disciplined approach and close monitoring are essential, but RCOM’s unique profile in the Indian technology and telecom space may offer precisely the kind of risk-adjusted upside that opportunistic capital seeks in times of sectoral transformation and market volatility.

In the context of India’s evolving telecom landscape and surging market appetite for high-beta special situations, Reliance Communications stands at the cusp of what could be a pivotal moment—leading investors to seriously consider its role as an ideal speculative entry in 2025’s portfolio strategies.

How to buy Reliance Communications stock in India?

Buying Reliance Communications (RCOM) stock online is both simple and secure when you use a regulated broker in India. Investors have two main options to access this high-risk telecom equity: you can purchase shares outright (spot buying) on the NSE, or you can trade the price movement via Contracts for Difference (CFDs) on select online platforms. Each method has its pros and cons, making it important to choose what best suits your investment goals. To help you make an informed decision, we provide a broker comparison further down the page.

Spot buying

With spot buying, you’re purchasing actual Reliance Communications shares, which are then held in your demat (dematerialized) account. In India, most brokers charge a fixed commission per order, typically ranging from ₹20 to ₹40 (under ₹50).

Example

If RCOM is trading at ₹1.55 per share and you invest $1,000 (roughly ₹83,000), you can buy about 53,548 shares (excluding minor exchange charges), even after accounting for a ₹50 brokerage fee.

Gain scenario:
If the share price rises by 10% to ₹1.71, your shares are now worth ₹91,300.
Result: +₹8,300 gross gain (approx. +$100), which is a 10% return on your initial investment.

Trading via CFD

CFD trading lets you speculate on RCOM’s share price without directly owning the stock. With CFDs, you usually pay a spread (the difference between the buying and selling price) and may incur overnight financing costs if you hold positions overnight. Leverage is a key feature: for example, with $1,000 (₹83,000) and 5x leverage, you control ₹415,000 worth of stock exposure.

Example

Gain scenario:
If the RCOM share price rises 8%, your position increases in value by 8% × 5 = 40%.
Result: +₹33,200 profit (approx. +$400) on a ₹83,000 stake (excluding fees and spread).

Final advice

Before buying Reliance Communications shares or trading their price via CFDs, always compare brokers for fees, commissions, and platform features. The right method depends on your risk appetite and objectives—whether you prefer owning stock or taking advantage of short-term price movements with leverage. For a clear overview of regulated options and account details, see the broker comparator below this page. Happy investing!

Our 7 tips for buying Reliance Communications stock

The latest news about Reliance Communications

Reliance Communications stock posted a positive weekly change of 5.44%, demonstrating continued speculative interest. Over the last seven days, RCOM shares climbed despite overall market volatility, supported by technical momentum and increased trading activity. While intraday volatility remains typical for penny stocks under insolvency, the sustained weekly gain signals constructive short-term sentiment among local retail participants who are anticipating progress in the insolvency resolution process. This price action contrasts with the broader negative performance seen over longer horizons.

The 58th Committee of Creditors meeting was convened on May 13, 2025, indicating active steps in the insolvency resolution process. Formal communication by the Resolution Professional confirmed the meeting, ensuring that the statutory process continues under the oversight of the National Company Law Tribunal (NCLT). The regularity of these high-level meetings reassures stakeholders and market participants about compliance and momentum in finding a viable resolution, which could unlock value for creditors and potentially offer upside to speculative investors.

Technical indicators, led by a bullish 20-day simple moving average and positive MACD, point to a constructive trading environment. The latest data show the 20-day SMA at ₹1.54, above the current price, accompanied by a bullish MACD reading of 0.02. Although the stock’s stochastic RSI indicates an overbought condition, and the trend remains weak (ADX 17.57), the convergence of these short-term momentum measures has been a catalyst for recent upward price action, drawing in traders seeking short-term opportunities in the Indian penny stock segment.

RCOM continues to progress its corporate simplification by striking off overseas subsidiaries, as officially disclosed. Recent regulatory filings confirm the formal removal of Anupam Global Soft (Uganda) and Lagerwood Investments (Cyprus) from its group structure. These moves are part of ongoing efforts to streamline operations, reduce overhead, and prepare the organization for resolution or potential restructuring. This constructive corporate action sends positive signals regarding management’s commitment to efficiency and transparency despite the company’s distressed status.

Major institutional and public shareholding provides a stable base for market participation, with over 93% of shares held by the public. The latest shareholding information reveals that more than 1.56 million individual shareholders collectively own 93.96% of the company, while domestic and foreign institutional investors maintain a minority presence. This broad-based and largely local public participation underlines ongoing domestic interest in the stock, ensuring liquidity and facilitating constructive engagement in market developments related to the insolvency process.

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.