Why RIL Just Got Its Third Bull Call From A Global Brokerage In 2 Months

Mukesh Ambani’s Reliance Industries has received a strong recommendation from another global brokerage that sees potential growth across a number of the business’ verticals.

What Happened: Morgan Stanley remains optimistic about Reliance Industries Limited (RIL) stock, pointing out potential for increased valuation across its various sectors.

The brokerage maintains an “overweight” rating on RIL stock with a target price of ₹3,046, which . Morgan Stanley believes that RIL has the potential for valuation growth across its different sectors, including new energy, refining, chemicals and telecom.

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The reduction in debt and a slowdown in capital expenditure will further support the company’s valuations, according to the brokerage. The decrease in net debt is expected to lead to an increase in RIL’s stock valuation.

Additionally, Morgan Stanley highlighted several positive factors, such as the increase in global fuel demand, which alleviates long-term concerns. The brokerage also noted the potential for significant revenue and profit growth for Reliance Jio due to anticipated mobile phone tariff hikes. Further, the new energy sector is expected to contribute to additional revenue.

Not The Only One: Last month, Goldman Sachs reiterated a “buy” rating on Reliance, with a potential 54% upside by FY26 in its optimistic scenario based on favourable risk-reward dynamics, value unlocking from its Disney joint venture, and improved return on capital investments as the capex cycle in Reliance Retail and Jio Telecom reaches its peak.

Meanwhile, another global brokerage firm, UBS, raised its target price on the stock from ₹3,000 to ₹3,420.

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