BackAs RIL shares trade at record high, what Morgan Stanley's Ridham Desai says on stock's outperformance
Reliance Industries (RIL) is in Morgan Stanley's focus list
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From among the top 20 aggregate institutional holdings, active positions (relative to the MSCI Index) rose the most for Reliance Industries (RIL) as institutions like FPIs, mutual funds, DFIs probably had to catch up with the stock's outperformance, highlighted global brokerage Morgan Stanley in a note.
RIL shares have outperformed by rising to new highs in the past few sessions as the index heavyweight has surged about 8% in a month, with its market capitalization crossing ₹19 lakh crore mark, as compared to over 1% fall in benchmark Sensex during the said period.
Reliance Industries stock is in Morgan Stanley's focus List. Tightening global refining and chemical markets as the global cost curve inflects, rising market share and reduced competitive intensity in telecom industry and partnerships in new energy business as key risks to upside, said Morgan Stanley's Ridham Desai highlighting its base case valuation methodology for RIL and risks.
It sees ban on single-use plastic that could hurt margins in the medium term, any delay in monetization of its energy and telecom assets and new energy investments seeing execution hiccups could act as key risks to downside.
Last week, Morgan Stanley (MS) raised its target price on the RIL stock as it believes hydrogen adoption plans are quickly progressing, with Reliance Industries best positioned to capitalize.
“Heightened awareness of energy security is creating new and bigger markets for solar panels and electrolyzers, which not only inflects Reliance Industries' new energy ROCE but will also help fund this growth," MS had stated in the note on April 20.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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