Morgan Stanley Recommends 'Buy' on RIL, Citing AI Plans and Strong Financials

• Morgan Stanley upgraded Reliance Industries to 'top pick' with an 'overweight' rating, setting a target price of 1,803 rupees (28% upside).
• Confidence surged due to RIL's 10 lakh crore rupees investment over seven years in AI, digital infrastructure, and energy facilities.
• RIL plans multi-gigawatt AI-ready data centers, supported by 10 GW renewable energy and chip infrastructure, with first 120 MW by H2 2026.
• The company's annual operating cash flow of 14-15 billion dollars ensures ample funding for these large-scale AI investments.
• New AI-based 'intelligence business' is projected to yield higher returns (ROCE >12%, ROE ~18% in 5 years) than previous ventures.