A Large cap company Reliance Industries has a Market capitalization of ₹17,97,000 Crores. On Tuesday the share price closed 1.9% down to ₹2,661.80 per share from its previous close of ₹2,713.30.
Looking at their December quarterly result the Reliance Industries Ltd net revenue has increased by 3.8% YoY from ₹2,16,737 crores to ₹2,25,086 crores. Additionally, their net profit rose by 10% YoY from ₹17,806 crores to ₹19,641 crores.
As per CNBC-TV18, Morgan Stanley holds an overweight outlook on the stock and has elevated its target price to ₹3,046, suggesting a 15% surge from the intraday low of ₹2,645.1 on January 23, 2024.
The brokerage, in its note, expressed confidence that Reliance Industries Limited (RIL) is poised for a favorable period in 2024, both literally and in terms of re-evaluation.
Morgan Stanley sees the start of solar panel production as a big opportunity for growth. They believe that the fourth investment cycle of this century will slow down, but starting solar panel production will boost value. In the last 20 years, investment cycles have unwound, creating two to three times more value for shareholders.
Looking ahead to FY 23–26, Morgan Stanley predicts a 13% CAGR in earnings per share (EPS), driven by various short- and medium-term business factors.
Reliance Industries Limited has a low debt-to-equity ratio of 0.42, a return on equity of 8.9%, a return on capital employed of 9%, and a net profit margin of 8.4%.
The company’s shareholding is made up of 50.30% promoters, 10.80% public investors, 22.13% foreign institutional investors, and 16.59% domestic institutional investors.
Reliance Industries Limited is an Indian company that is involved in hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, advanced materials and composites, renewables (solar and hydrogen), retail, and digital services.
Written by Sriram KV
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