Reliance Industries, India’s most valuable company, received positive news for its 37 million investors. Global brokerage firm Morgan Stanley stated that under Mukesh Ambani’s leadership, the company could see an increase of $60-100 billion in its fourth monetization cycle. Alongside, the brokerage raised the target price for Reliance’s shares to ₹3,540 in the base case scenario. As of 1:47 PM today, the company’s share was trading at ₹3,121.70, down 0.32%. Last week, the company’s market cap surged to ₹15,2264.63 crore, surpassing ₹21 lakh crore for the first time.
According to Mayank Maheshwari of Morgan Stanley, if ROCE remains above 10%, new investments in New Energy, retail sector expansion, and energy business plans could lead to sustained income growth for several years. It is estimated that from fiscal year 2024 to fiscal year 2027, various verticals could trigger a 12% EPS CAGR. The brokerage believes Reliance’s ROI is higher than the cost of capital due to changes in capital structure, making it more profitable, sustainable, and less cyclically dependent.
Recently, brokerage firms have increased their EPS estimates for 2025 to 7% and for 2026 to 8%, taking into account the recent hike in telecom tariffs, oil prices, and refining margins. Last week, Reliance’s shares surged by more than 8% following the announcement of tariff increases by Reliance Jio, reaching a new all-time high of ₹3,161.45, surpassing its previous high touched on Friday. The stock’s 52-week low is ₹2,221.05. Reliance, India’s most valuable company, had last touched this level on October 26 last year. The company currently holds a market cap of $253.41 billion.
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