Morgan Stanley maintains an Overweight rating on Reliance Industries with a target price of ₹1,662, representing a 31.8% upside from its current market price of ₹1,261.35.
Key Insights:
- Undemanding valuations make RIL attractive at current levels.
- Refining segment continues to be a strong driver, contributing significantly to free cash flow (FCF) with global capacity expansions.
- Expected to contribute nearly half of global demand growth in 2025, with tighter supply-demand dynamics through 2027.
- Retail profitability should see an uptick in FY26, aided by the rationalization of ~3.6 million sq ft of store space in the last two quarters.
- New Energy vertical, though underappreciated, is expected to improve the profitability of the oil-to-chemical (O2C) business in 2025.
Morgan Stanley’s bullish stance reflects optimism about RIL’s ability to capitalize on growth across its diverse business verticals.
Disclaimer: This article is for informational purposes only. Please consult your financial advisor before making any investment decisions.
