Reliance shares in focus as Morgan Stanley sees up to 31% upside potential

Shares of Reliance Industries may remain in focus on Thursday, January 9, as the global brokerage firm Morgan Stanley has set a target price of Rs 1,662 for the stock while maintaining its ‘overweight’ rating. The target price suggests a potential growth of 31% from current levels. A key factor supporting Morgan Stanley's bullish stance is the improving outlook for RIL's refining business.

The brokerage firm notes that refining, a significant driver of RIL's free cash flow (FCF) generation, is poised for growth due to increased global capacity. This expansion is expected to capture a substantial portion of global demand growth in 2025, with further tightening of the market projected through 2027. Morgan Stanley also anticipates improved profitability in RIL's retail segment in FY26.



This improvement is expected to be driven by the rationalization of the company's store footprint, which has seen a reduction of approximately 3.6 million square feet over the past two quarters. Furthermore, the brokerage firm’s note highlights the underappreciated potential of RIL's New Energy business.

While currently primarily used internally, the New Energy segment is expected to contribute to improved profitability within the oil-to-chemicals (O2C) vertical in 2025. Stock Trading Masterclass on Value Investing and Company Valuation View Program Stock Trading Market 104: Options Trading: Kickstart Your F&O Adventure By - Saketh R, Founder- QuickAlpha, Full Time Options Trader View Program Stock Trading Technical Analysis for Everyone - Technical Analysis Course By - Abhijit Paul, Technical Research Head, Fund Manager- ICICI Securities View Program Stock Trading Stock Markets Made Easy By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Renko Chart Patterns Made Easy By - Kaushik Akiwatkar, Derivative Trader and Investor View Program Stock Trading Market 101: An Insight into Trendlines and Momentum By - Rohit Srivastava, Founder- Indiacharts.com View Program Stock Trading Markets 102: Mastering Sentiment Indicators for Swing and Positional Trading By - Rohit Srivastava, Founder- Indiacharts.

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Reliance Industries shares closed 1.9% higher at Rs 1,264.70 on the BSE on Wednesday.

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