HomeMarket NewsReliance Industries shares offer valuation comfort, Morgan Stanley sees upside risks
Morgan Stanley noted in its report that even as global refiners and Asian chemical stocks have re-rated, Reliance Industries continues to trade at a discount to its local peers.
Reliance Industries Ltd. (RIL) shares have an upside risk as the multiples of its energy business could cushion the de-rating seen in the consumer vertical, brokerage firm Morgan Stanley wrote in its note.
Morgan Stanley maintained its “overweight” rating on the stock and with a price target of ₹1,803 per share, implying an upside potential of 27.1% from Monday’s closing price of ₹1,418.
The brokerage noted in its report that even as global refiners and Asian chemical stocks have re-rated, Reliance Industries continues to trade at a discount to its local peers.
Tight global markets and supply curtailments will keep refining margins higher for longer, the note said on the back of the ongoing Iran-Israel-US war, which has resulted in global trade disruptions, a surge in oil prices, and extreme volatility in global markets.
Last month, the brokerage had labelled the stock a ‘top pick’ as it maintained the same rating and price target as the present.
It said the company has pivoted every decade in its nearly 48 years of listed history. The analyst said RIL’s aim of investing $110 billion AI, related energy supply as well as the digital ecosystem over the next seven years is the next major shift in capital allocation.
Of the 37 analysts who track Reliance Industries, 35 have ‘buy’ ratings and two have ‘sell’ recommendations.
Shares of Reliance Industries ended 1% higher on Monday at ₹1,418.6, emerging as the primary contributor to the recovery seen on the Nifty 50 index from the lows of the session. The stock has gained nearly 6% in the last three sessions, compared to a 2% fall seen on the Nifty 50 index. It was also one among the only eight stocks that gained on the index on Monday.
Also Read: February life insurance data: Axis Max Life, Canara HSBC lead; SBI Life, LIC see base-driven gains
Note To Readers
Disclaimer: CNBC-TV18 is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
