Reliance Industries Share Price Target: Morgan Stanley sees 40% upside, names Mukesh Ambani’s RIL top pick - here’s why - Markets | Latest News Updates

Reliance Industries Share Price Target: Mukesh Ambani-led Reliance Industries will be in focus in today’s trading session, as global brokerage firm Morgan Stanley has maintained a positive outlook on the stock and expects it to outperform its peers. Additionally, the stock is the top pick of analysts at Morgan Stanley.

The brokerage firm has maintained an “Overweight” rating on the stock and set a price target of Rs 1,803, which reflects an upside of around 40 per cent from the current price level.

On the outlook side, Morgan Stanley has highlighted that energy security policies and tighter refining markets are expected to keep product spreads structurally stronger for longer.

The brokerage said oil-to-chemicals earnings remain supported despite higher logistics costs, with Reliance Industries positioned well due to its capability in processing heavy and sour crude, along with diversified sourcing.

According to the note, the chemical cycle recovery is being supported by advantaged feedstocks, including US ethane and captive naphtha, which are expected to lift earnings by 6-8 per cent this year.

Morgan Stanley also noted that “Monetisation 4.0” is underway, driven by the scaling up of solar modules, solar cells, and energy storage manufacturing, although this is not yet fully reflected in valuations.

On new growth areas, the firm said AI monetisation and data centre investments remain a “show-me” story for investors.

The report added that the stock is currently trading at 1.1x EV to invested capital, representing a 68 per cent discount to domestic peers across verticals, a level similar to 2018 prior to a period of significant outperformance.

The company has a market valuation of Rs 17,49,757 crore, and a price-to-earnings ratio of around 22.5. While this is broadly in line with historical averages. (RIL P/E Ratio)

The stock’s profitability remains moderate, with return on equity at 8.9 per cent, reflecting the capital-intensive nature of its expansion across energy, retail, and digital businesses. (RIL ROE)

From a return perspective, the stock has not performed strongly in the short to medium term but has proven to be a strong wealth creator for investors over the long term. The stock has risen over 450 per cent in 10 years, while showing moderate gains over the 5-year and 3-year periods.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)

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