Reliance Industries Shares Price: Shares of Reliance Industries may rise by about 36 percent from the current level. Two foreign brokerage firms – Morgan Stanley and JP Morgan have made this estimate in their recent reports. Both the brokerage firms reiterated their bullish outlook on Reliance shares and gave it an ‘overweight’ rating. He said that the margins of Reliance Industries’ refining business are improving.
JP Morgan said that one of the two reasons for the recent decline in the shares of Reliance Industries was the weak margins of its refining business. However now this trend is changing. The second reason was weak sales growth on the retail front.
Morgan Stanley also agreed with this view and said that after two difficult quarters, margins are now showing improvement. On the global front, about 600,000 barrels per day of refining capacity is expected to be shut down in the next 2025. Due to this, Morgan Stanley feels that Reliance Industries’ free cash flow engine will gain momentum due to tightness in global supply and better margins.
Morgan Stanley has reiterated its target price of Rs 1,662 for Reliance Industries, which implies an upside of about 36 percent from the current level. Whereas JP Morgan has given the target price of Reliance Industries shares as Rs 1,468 per share.
On Friday, November 22, shares of Reliance Industries closed at Rs 1,264 on NSE with a rise of 3.35 per cent.
Apart from this, the prospects for the new energy unit of Reliance Industries are also improving because China has tightened the rules related to the production of new solar panel capacity. JP Morgan said that when Reliance’s solar power plants start up, this could become a small catalyst for it in the near-term.
The market capitalization of Reliance Industries has recently decreased by about 50 billion dollars. However, Morgan Stanley says the share price only reflects potential challenges in various business segments and does not take into account potential improvements made.
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