Ril To Gain Further By Upto 21%; Brokerages Bullish On The Stock

Reliance Industries in trade on February 15, 2022 have gained by a substantial 3.5 percent at day's high price of Rs. 2419.85 per share. The sharp spurt is in line with the headline indices and after most of the brokerages said the company's intent to put the company's gasification assets worth Rs. 30,000 crore for clean energy will enable the company to rope in more investors. Regardless of the fact that the stock has been a loser in recent months, brokerages have been bullish on the counter.

So, here are the brokerages recommendation on the oil to telecom conglomerate:

1. Morgan Stanley:

The company has maintained an 'overweight' rating on the stock with a target of Rs. 2926, i.e. an upside of 21.5% from the last traded price of Rs. 2409.07. As per the international brokerage, the company has been performing well and given the way crude and gas prices are headed, the company shall do well going ahead too.

"The RIL stock offers the most attractive risk-reward in the India energy space," it said. Gases will drive NAV and multiple expansion for Reliance Industries under its plan to monetize and expand energy infrastructure. "The 'life of asset' debate should also reverse and boost multiples as investors appreciate the long term margin increase that RIL can sustain by asset repurposing," it further said.

2. Motilal:

The brokerage firm values the Mukesh Ambani led company at 7.5x, telecom at 17x FY24E, and retail at 31x FY24E EV/EBITDA. With a target price of Rs 2,800, the domestic brokerage firm has reiterated BUY rating on the stock.

"While it is difficult to value the recent foray into renewables as well as the future foray into chemicals, the current valuation multiple of the standalone business may see an upward revision going forward," it said.

According to analysts at MOFSL, RIL's foray into chemicals would complement the earlier commenced initiatives of the four renewable Giga plants. Key risks the Buy call could be technology risks associated with the new age renewables, high capex as well as similar large-scale announcements by other global players.

Brokerage	Current price of RIL	Target	Upside
Reliance Industries	Rs. 2409.07	Rs. 2926	21.5%
Reliance Industries	Rs. 2409.07	Rs. 2800	16%

Disclaimer:

The views on the stock are as put by the brokerages. Stock markets are currently witnessed heightened volatility. Investing in stock markets poses financial loss risk.

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