InvestorQ : As per Morgan Stanley report, Reliance Industries is planning to invest $60 billion in the next 10 years? Does that make RIL a good buy?
Katherine Gonsalves made post

As per Morgan Stanley report, Reliance Industries is planning to invest $60 billion in the next 10 years? Does that make RIL a good buy?

Answer
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rhea Babu answered.
3 weeks ago


The big investment plan has been reported by Morgan Stanley and that is a huge sum because Rs.450,000 crore over 10 years is almost as big as its investment in Jio since 2012. The stock also got a boost on Wednesday trading due to this factor.

Morgan expects that most of these investments would go towards inorganic acquisitions for expanding its digital and retail franchise. However, considering its relatively comfortable cash flow positions currently, the financials could be less challenging for RIL.

While RIL has shown keenness to wind down the debt and deleverage the company, it has also shown interest in investing heavily in new oil, partially by monetizing its stake in the refinery business and selling to Aramco.

In the last AGM, Reliance had charted out its path to become net carbon zero, integration into chemicals and last-mile consumer reach in retail. These could be the big areas since a lot of the telecom investments are already done and dusted.