Four quarter earnings downgrade cycle set to reverse for RIL, says Morgan Stanley

Morgan Stanley and Bernstein are both optimistic about the growth prospects of Reliance Industries Ltd (RIL). Morgan Stanley sees both refining and chemicals margins expanding to reverse a four-quarter earnings downgrade cycle, while Bernstein predicts that RIL’s new energy business will become the new pillar of growth. Bernstein forecasts that by 2050, Reliance New Energy will be valued at Rs 1,200-2,200/share, equivalent to over 10x the current value. Both firms argue that concerns over RIL’s debt are overdone.