Reliance Industries: Morgan Stanley Forecasts 28% Growth, Highlights AI Capex as Major Driver
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Morgan Stanley Bullish on RIL: Sees 28% Upside, Flags AI Capex as Next Big Trigger
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News18•20-02-2026, 15:27
Morgan Stanley Bullish on RIL: Sees 28% Upside, Flags AI Capex as Next Big Trigger
•Morgan Stanley names Reliance Industries (RIL) its ‘top pick’ with an ‘overweight’ rating and a target price of Rs 1,803, implying a 28% upside.
•RIL plans to invest Rs 10 lakh crore over seven years in AI, digital infrastructure, and associated energy supply, marking a major capital allocation shift.
•The AI roadmap includes multi-gigawatt AI-ready data centers, supported by up to 10GW of renewable energy and semiconductor infrastructure.
•Morgan Stanley estimates the first 1GW phase of AI infrastructure could require $12–15 billion, funded by RIL's $14–15 billion annual operating cash flow.
•The brokerage expects the new 'intelligence' business to generate superior returns (12% ROCE, 18% ROE) compared to RIL's telecom or retail ventures.
