By the end of this decade hydrogen and related ecosystems will create a $10bn value for Reliance Industries Ltd (RIL) and account for nearly 10% of RIL’s earnings as the company invests nearly $4-5 bn in new energy businesses, said global brokerage Morgan Stanley in a report.
The brokerage firm has upgraded RIL’s target price by 20% to Rs 3,253 a share, reiterating its overweight rating on the stock. RIL’s shares hit a 52 week high on Thursday at Rs 2765.50, up 1.73%.
“We expect up to a 10% boost to RIL’s NAV (net asset value) in anticipation of quicker hydrogen monetization. We estimate hydrogen can achieve a 14-15% ROCE (return on capital employed) for RIL. As the green hydrogen ecosystem is rolled out, it will also raise demand for RIL’s solar panels,” said Morgan Stanley in a report dated 20 April.
RIL plans will make it among the most integrated green hydrogen players…