What is the story about?
Shares of Nifty 50 heavyweight Reliance Industries Ltd
. gained as much as 1% on Friday, January 2, trading near record highs after Morgan Stanley reiterated its 'Overweight' rating and maintained a price target of ₹1,847 per share.
The target implies an upside of around 18% from the stock's previous close.
The brokerage said Reliance Industries is currently in its fourth monetisation cycle over the past 30 years, monetising nearly $80 billion of investments across its businesses while continuing to invest in future-facing industries.
Drawing parallels with earlier cycles in 2017 and 2021, Morgan Stanley said the stock could see multiple and return expansion, backed by catalysts in every quarter of 2026.
The brokerage highlighted several near-term and medium-term triggers, calling 2026 a potential inflection year in Reliance's monetisation journey.
RIL has outperformed the Sensex by about 35 percentage points during the last two monetisation cycles between 2017-19 and 2020-21.
The brokerage expects re-rating and earnings upgrades to play out through each quarter of 2026.
Key triggers include a refining up-cycle in Q1FY26, an ARPU hike and retail revenue growth in Q2FY26, a ramp-up in new energy initiatives and a potential digital vertical IPO in Q3FY26, and a recovery in chemicals by Q4FY26.
It added that underwriting of Reliance's AI data centre capacity by US hyperscalers could improve visibility on net asset value accretion from its AI investments.
Of the 37 analysts tracking Reliance Industries, 35 have a 'Buy' recommendation on the stock, while two maintain a 'Sell' rating.
Shares of Reliance Industries are now trading 0.83% higher at ₹1,588.70. The stock is just few points away from its record high of ₹1,608.
The target implies an upside of around 18% from the stock's previous close.
The brokerage said Reliance Industries is currently in its fourth monetisation cycle over the past 30 years, monetising nearly $80 billion of investments across its businesses while continuing to invest in future-facing industries.
Drawing parallels with earlier cycles in 2017 and 2021, Morgan Stanley said the stock could see multiple and return expansion, backed by catalysts in every quarter of 2026.
The brokerage highlighted several near-term and medium-term triggers, calling 2026 a potential inflection year in Reliance's monetisation journey.
RIL has outperformed the Sensex by about 35 percentage points during the last two monetisation cycles between 2017-19 and 2020-21.
The brokerage expects re-rating and earnings upgrades to play out through each quarter of 2026.
Key triggers include a refining up-cycle in Q1FY26, an ARPU hike and retail revenue growth in Q2FY26, a ramp-up in new energy initiatives and a potential digital vertical IPO in Q3FY26, and a recovery in chemicals by Q4FY26.
It added that underwriting of Reliance's AI data centre capacity by US hyperscalers could improve visibility on net asset value accretion from its AI investments.
Of the 37 analysts tracking Reliance Industries, 35 have a 'Buy' recommendation on the stock, while two maintain a 'Sell' rating.
Shares of Reliance Industries are now trading 0.83% higher at ₹1,588.70. The stock is just few points away from its record high of ₹1,608.
