Analysts increase RIL’s target price by over 20%

In the last five days, shares of Reliance Industries, the Nation’s largest company in terms of market capitalization, have increased by almost 8% at a time when Indian bourses and markets have been struggling with high inflation. Analyst and Investors consider Reliance’s hydrogen energy sector as the driving force behind the company’s shares. Renowned Global investment banking firm Morgan Stanley estimates the hydrogen segment of RIL to contribute 10% to its earnings with a net asset value of $10 billion. Analysts think that hydrogen adoption plans are rapidly progressing in India compared with global peers. This makes Reliance Industries Limited best positioned to capitalize on the Hydrogen Energy Segment.

In its report released on April 20, Morgan Stanley said, “Hydrogen adoption plans are quickly progressing, with RIL best positioned to capitalize,” Yesterday,  shares of RIL closed 2.34% higher at ₹2,783 per share. Lately, Reliance Industries has announced to produce green hydrogen and also build an electrolyzer factory to generate green energy. Morgan Stanley in its report stated, “As the green hydrogen ecosystem is rolled out, it will also raise demand for RIL's solar panels. To put things in perspective, India's 2030 hydrogen production target would absorb the entire 100 gigawatts cumulative panel capacity that RIL plans to achieve.”