Reliance Industries Hits Fresh 52-Week High; Morgan Stanley Ups Target Price To Rs. 2925

Shares of Reliance Industries in trade on October 5, 2021 hit a fresh 52-week high price of Rs 2612, gaining over 2 percent from the last closing price. The stock's all time high price of Rs. 3252.1 per share was reached on January 15, 2008.

Reliance Industries Hits Fresh 52-Week High; Morgan Stanley Ups Target Price To Rs. 2925

Notably some of the recent triggers for the stock price rise of the conglomerate scrip have been the steep rise in natural gas price which is said to augur well for oil exploration and production companies'. Also, as per the Reuters report, RIL has set up a fully-owned subsidiary entity in the UAE to carry out trading in crude, petroleum, petrochemical products and agricultural commodities.

The new entity has been incorporated by the name of Reliance International Ltd (RINL), and the parent entity has put in a sum of $1 million into the new venture.

Meanwhile, Morgan Stanley that maintains an 'overweight' rating on the scrip of Reliance Industries Ltd (RIL) has sharply raised its target price to Rs. 2925. As per the global financial services firm, silicon and hydrogen shall emerge as the upcoming decade's 'new oil' for Reliance Industries. Furthermore, if everything falls as planned by 2025, "it is a USD 60 billion potential opportunity in terms of value creation", adds the research firm.

In base case, the brokerage expects a contribution of USD 25 billion to the one-year forward NAV, and a steady 11-13 percent return on capital employed (RoCE). Additionally, it is of the view that the new energy EBITDA could be of the same scale as what the present petrochemical business contributes and the multiples could also be twice as much as the current petrochemical business' valuation.

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