Morgan Stanley made an estimate about Reliance Industries, $ 100 billion can be added

A big estimate has been made about Reliance Industries Limited. This estimate has been made by Morgan Stanley. Morgan Stanley said that Reliance Industries Limited (RIL) can increase its market capitalization by up to $100 billion in its fourth monetization cycle of this century. The reason behind this is that new cash flow sources are emerging and valuation multiples are rising.

The foreign brokerage said Monetisation 4.0 is different from previous monetisations as it is backed by the business cycle, domestic demand and low competition. It added that monetisation cycles over the past nearly three decades have generated 2-3 times value creation for RIL shareholders. “This monetisation comes after $60 billion of investments in 2021-23, which was the shortest investment cycle for RIL since the 1990s.

“Investments in new energy, retail expansion to take market share from the unorganised sector, and repurposing of existing energy businesses provide a long runway for sustained earnings growth beyond the next three years, provided ROCE remains above 10 per cent,” Morgan Stanley said.

Forecasting 12 per cent earnings per share (EPS) growth year-on-year over FY2024-27 with multiple triggers across sectors, it said, “We reflect the recent telecom tariff hike, oil prices and refining margins, and raise our EPS estimates fractionally by 7 per cent for 2025, 7 per cent for 2026 and 8 per cent for 2027.”

Our price target is raised to ₹3,540 from ₹3,046. RIL has been a “show me” story for the past decade and has seen significant upside in market capitalisation after getting new revenue sources like new energy, higher telecom tariffs/chemical margins.”

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