Morgan Stanley has maintained its overweight rating on Reliance Industries (RIL) with a target price of ₹1,701, saying the company’s equity story is being redefined by its exposure to “anti-involution” themes and artificial intelligence. The brokerage said RIL is the largest beneficiary of China’s anti-involution drive across energy and solar supply chains, while its own “self anti-involution” initiatives in consumer retail and telecom are delivering results in terms of scale and profitability.
Morgan Stanley estimated that involution-linked opportunities add around $20 billion in net asset value and could contribute 17% to FY28 estimated earnings per share. It also raised its new energy NAV estimate by 20% to $25 billion by FY27, citing the scaling of solar and battery manufacturing projects. The brokerage said these structural drivers, combined with RIL’s diversified portfolio, provide significant re-rating potential as the company transitions into less cyclical and faster-growing businesses.
Disclaimer: The views and recommendations made in this article are those of Morgan Stanley. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
