While there is no major fundamental turnaround publicly announced by the company, analysts suggest speculative interest, short-term momentum, and low base effect may be fuelling the rise.
The stock has gained 18.86 per cent in the past week alone, and a staggering 51.08 per cent over two weeks, as per data from the Bombay Stock Exchange. Its one-month return of 133.03 per cent has been further compounded by a three-month surge of 149.68 per cent, and six-month appreciation of over 101 per cent.
What’s Driving the Rally?
While there is no major fundamental turnaround publicly announced by the company, analysts suggest speculative interest, short-term momentum, and low base effect may be fuelling the rise. At present, Reliance Home Finance’s market capitalisation stands at Rs 372.63 crore.
Despite the sharp rise, experts have flagged that the stock is now in what’s called the “P/E Sell Zone”, having traded below its current P/E ratio of 15.3 nearly 80 per cent of the time. This means most of the immediate upside could already be priced in.
Should Investors Be Cautious?
The strong Momentum Score of 79, as reported by Trendlyne, shows heightened technical performance and bullish investor sentiment. However, the stock lacks a clear signal of underlying business revival, raising concerns over sustainability.
“This rally seems driven more by market momentum than solid fundamentals. Investors should tread carefully,” a Mumbai-based analyst told Business Today on condition of anonymity.
The company has not recently declared any restructuring plan, capital infusion, or regulatory breakthrough that would support long-term fundamentals. Industry observers believe the rally could taper off unless tangible business developments emerge.
Historic Performance Snapshot
Reliance Home Finance has a five-year return of 380.63 per cent, but much of it reflects a rebound from deep lows following financial distress and regulatory setbacks during the late 2010s. Over the past year, the stock has climbed 88.94 per cent, with a 52-week high of Rs 7.84 and low of Rs 2.15—a clear indication of its high volatility.
Expert Advice: Stay Alert
“The views expressed in this article are purely informational,” notes Republic Business, urging investors to seek expert financial advice before taking exposure.
