Shares of Reliance Industries Ltd (RIL) were in focus on Monday after global research firm Morgan Stanley put an ‘overweight’ call on the company’s stock with a target price at Rs 3,253 per share, an upside of 17 percent from current market price.
The global brokerage firm said that the oil-to-telecom conglomerate’s energy vertical is on track to deliver its best quarterly performance in more than 20 years. It noted that the petrochemicals margin is up on a quarter-on-quarter (QoQ) basis despite lockdowns in China.
At 1018 IST, shares of Reliance Industries Ltd were trading flat at Rs 2,778.05 on the BSE.
RIL's stock price performance in the past three months
Besides this, Morgan Stanley noted that RIL tied up with Swiggy, Bluesmart, TVS, Mahindra, MG Motor India and Castrol to install EV charging stations in India for two-wheelers and four-wheelers.
MG Motor India and Castrol India announced a collaboration with Reliance Jio-bp to explore mobility solutions for electric cars, according to a joint statement released by the companies. This move aims to boost by building infrastructure for electric vehicle (EV) charging as well as an EV service network.
The brokerage firm believes that Reliance Industries’ focus on two-wheeler aggregators is a step in the right direction.
“RIL's focus on two-wheeler aggregators like Swiggy and original equipment manufacturers (OEMs) like TVS, should help it roll out its network more efficiently,” Morgan Stanley noted.
Two wheelers account for nearly 60 percent of the fuel consumption currently.
Also Read |
Besides, Singapore Gross Refining Margin (GRM) – the Asian benchmark – touched new life highs of $25.03 per barrel mark, on the back of rising demand for refined products globally. This is also expected to benefit Reliance Industries, IOCL, BPCL, HPCL, MRPL, and Chennai Petroleum as they process raw crude into refined products.
GRM is the difference between the total value of petroleum products coming out of an oil refinery (output) and the price of the raw material, (input) which is crude oil.