Reliance Industries, under the leadership of Mukesh Ambani, is targeting a significant increase in market value, aiming for an additional $50 billion through strategic investments in new energy and artificial intelligence (AI) infrastructure.

Currently valued at over $240 billion, Reliance is focusing on scaling its diversified verticals, particularly in new energy and AI, to drive future growth.

Morgan Stanley emphasizes that the company's journey towards this ambitious financial goal will necessitate a substantial 'reinvention' of its strategies.

To support its AI ambitions and contribute to establishing India as a data center hub, Reliance plans to integrate 10GW of solar capacity by the end of 2026.

The company is also advancing its green energy initiatives, which include manufacturing lithium iron phosphate batteries and producing green hydrogen on a 2,000-acre site in Kandla, Gujarat.

In addition, Reliance is developing Generative AI infrastructure at its Jamnagar energy complex, with an expected completion in two years, to enhance energy production monetization.

Morgan Stanley forecasts a 14% compound annual growth rate (CAGR) for Reliance's earnings from fiscal year 2025 to fiscal year 2028, driven by diverse sectors including oil-to-chemicals, retail, telecom, and new energy.

Morgan Stanley maintains an overweight rating on Reliance Industries, setting a price target of ₹1,617 per share, while noting the closing share price was ₹1,528 at the time of the report's publication.

The investment bank suggests that Reliance's focus on new energy and AI could lead to an additional $50 billion in value creation, with the new energy vertical potentially contributing up to $60 billion.

In the retail segment, Reliance is projected to grow revenue by 17% in fiscal year 2026, bolstered by new fashion brands and quick commerce ventures.

The report also highlights India's potential to emerge as a viable alternative data center hub, with Reliance providing essential infrastructure for this development.

Overall, Reliance's new energy initiatives are characterized as more ambitious and transformational than any previous efforts, reflecting the company's commitment to a global approach.