As the world retools the way it produces and uses energy, and as energy security takes center-stage, green hydrogen is gaining attention. Hydrogen adoption plans are quickly progressing, with RIL best positioned to capitalize, as per global brokerage Morgan Stanley. The energy upcycle should help fund its growth and lift multiples.
Heightened awareness of energy security is creating new and bigger markets for solar panels and electrolyzers, which not only inflects Reliance Industries’ (RIL) new energy ROCE but will also help fund this growth, the note stated.
“We estimate tightness in the gas and fuel refining markets will fund nearly half of RIL’s new energy capex over the next three years as refining margins and gas prices stay above mid-cycle levels,” Morgan Stanley added. It has a Buy rating on RIL shares and has raised…