Lower Circuit Stock: Retail investors' favorite stocks are simply being sold! -50% down, again hitting lower circuit today:The stock opened at ₹120.98, down from its previous close of ₹127.34.

News Topical, Digital Desk : The stock market today was extremely disappointing for investors. The stock opened with a direct lower circuit, and subsequently, the entire day was dominated by sellers. Weak results, heavy debt, institutional investor stake reductions, and brokerage downgrades have combined to put significant pressure on the stock. Having lost nearly 50% in a year, the stock is now facing a significant test of investor confidence.

Taking a broader perspective, the stock's performance appears to be quite dire. It has lost nearly 50 percent in the past year, and has fallen nearly 40 percent in just three months.

Reliance Infrastructure's decline in 2026 has been even more severe. The stock has fallen from a high of ₹425 to a low of around ₹128, a steep decline of nearly 50%. The company's weak financial position is believed to be the primary reason behind this decline. In Q3 FY26, the company's profit before tax (PBT) declined by approximately 89.5% year-on-year to ₹221 crore. The company also reported a net loss of ₹8.88 crore, a 100.9% decline compared to the previous year. Not only profits, but sales also declined by 19.3%. The company's operational and balance sheet indicators also appear to be quite weak. Its ROCE is only 4.58%, indicating that the company is generating a very poor return on its capital. Additionally, the Debt/EBITDA ratio is 7.32 times, indicating a significant debt burden on the company.

A major factor contributing to the pressure on the stock is the opinions of brokerages and rating platforms. On January 31st, MarketsMojo downgraded its rating on the stock from Strong Sell to Sell. According to the report, the outlook on the company's quality is negative. Technical indicators such as MACD and OBV also point to a weak trend. Over the past year, the stock has delivered a negative return of approximately 49%, while the market has seen limited but positive returns during the same period. This discrepancy is considered a major warning sign for investors. The decline in institutional investor holdings is also a cause for concern. Foreign institutional investors (FIIs) have declined to 1.57%, down from 6.79% previously. This means that foreign investors are increasingly exiting the stock. Meanwhile, promoter holdings are reported to be only around 19%, which is not considered very strong from a trust perspective. Sector-related difficulties are also causing problems for the company. The cost of power and infrastructure projects is continuously rising. Additionally, regulatory challenges persist, impacting the pace of new orders and projects. Furthermore, the company's risk from investigative agencies is also increasing investor concern. A case has emerged regarding the Enforcement Directorate's attachment of assets worth approximately ₹10,000 crore in 2025. Such events further weaken market sentiment. Overall, weak results, high debt, brokerage downgrades, institutional investor withdrawals, and sectoral difficulties are putting significant pressure on Reliance Infrastructure's stock. Currently, the stock is witnessing only selling pressure, indicating that investor confidence is yet to return.