Reliance Industries share price: Global financial services firm Morgan Stanley has reaffirmed its bullish view on Reliance Industries by retaining an Overweight rating with a target price of Rs 1,803.
A key highlight is Reliance’s push into green energy, as reflected through its recent announcement of a USD 3 billion deal for the supply of green ammonia to Samsung C&T.
The deal, for 15 years, is a critical milestone for Reliance’s monetisation of its new energy investments. The deal is also seen as being aligned with Reliance’s hydrogen and decarbonization strategy and puts it firmly in the race for clean energy.
The valuation of the newly formed energy business of Reliance is around USD 20 billion, according to Morgan Stanley, which is a reflection of the rising confidence of investors in the business’s scalability as well as its future earnings prospects.
The brokerage expects this business to contribute substantially to the overall profitability of the company in the next ten years, with the rise of green energy demand worldwide.
In addition to this new energy vertical, the brokerage house is also positive about Reliance’s traditional energy business. The company’s earnings from its oil-to-chemicals (O2C) business will improve further, backed by stable refining margins and efficiency gains. The continued strength of retail and digital services provides diversification benefits.
This, as per them, is an attractive opportunity to invest in the stock as they believe the discount to global peers is unwarranted, considering the scale and integrated business model of the firm, as well as the future prospects of the firm, especially in the clean energy space.
Reliance Industries Share Price
In the pre-market session at 8:48 AM, shares of Reliance Industries were trading 0.10 per cent higher at Rs 1396.45, compared with the previous closing price of Rs 1395.05.
Reliance Industries big move for Jio’s much-awaited IPO
Reliance Industries Ltd. is working with six banks, including BofA Securities and Goldman Sachs Group, for the proposed IPO of its telecom unit, Jio Platforms Ltd. Following recent approval for the listing from the government, this offering could become India’s largest, potentially raising over USD 4 billion, Bloomberg reported.
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