Reliance Industries Share Price Target: Rising tensions between the United States and Iran have brought Indian equities into focus, particularly companies engaged in oil-related businesses.
One such stock drawing attention is Mukesh Ambani-owned Reliance Industries Ltd (RIL).
Reliance Industries is a constituent of the BSE Sensex and currently has a market capitalisation of Rs 19,01,583.05 crore. Amid the ongoing geopolitical turmoil, global investment bank Morgan Stanley has issued its outlook for the company, along with its stock recommendation and price target.
Despite the geopolitical uncertainty, the brokerage continues to see upside potential for Reliance Industries and maintains a positive outlook on the stock.
Morgan Stanley's view on Reliance Industries
Global brokerage Morgan Stanley has reiterated its 'Overweight' rating on Reliance Industries with a target price of Rs 1,803, implying an upside of around 28 per cent from the current levels.
On the BSE, shares of Reliance Industries settled at Rs 1,405.20, up Rs 15.40 or 1.11 per cent, on March 6 (Friday). (Reliance Industries Share Price)
The brokerage noted that tight global oil markets are keeping refining margins elevated, which is expected to support Reliance's earnings outlook. It also highlighted that the company's ability to process heavy and sour crude and its diversified crude sourcing strategy provide a competitive advantage among global refiners.
Morgan Stanley further stated that the chemical cycle recovery is underway, supported by Reliance's access to US ethane and internal naphtha, which could further strengthen the company's performance.
According to the brokerage, FY27 earnings could see a 6 to 8 per cent uplift, while noting that the stock is currently trading at a discount to its local peers across business verticals.
Reliance Industries stock performance
Reliance Industries' stock shows mixed performance across periods, declining 10.78 per cent YTD and 3.15 per cent in one month, but gaining 16.08 per cent in one year, 26.46 per cent in three years, and 510.45 per cent over the past decade, according to the data available on BSE's official website.
Crude oil prices today
Since Reliance Industries has significant exposure to the oil and refining business, movements in global crude prices remain an important factor for investors.
Oil prices surged more than 20 per cent on Monday, reaching their highest level since July 2022, as the escalating US-Israeli conflict with Iran prompted some major Middle Eastern producers to cut supplies and raised fears of prolonged disruption to shipping through the Strait of Hormuz, a key global oil chokepoint, according to a Reuters report.
As of 8:40 am IST, Brent crude futures were up 22.7 per cent or USD 21.08 at USD 113.64 per barrel, while West Texas Intermediate (WTI) gained 23.5 per cent or USD 21 to USD 112.03 per barrel.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
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