Investment Tips 2026: This stock can become rockage by the end of the month, know what percentage growth is predicted?

Investment Tips 2026: Global brokerage firm Morgan Stanley has again expressed its confidence in Reliance Industries and described it as its “top pick”. The brokerage has maintained overweight rating on Reliance shares. Target price of Rs 1,803 has been fixed.

The brokerage says that Reliance’s investment of Rs 10 lakh crore in artificial intelligence, digital infrastructure and related energy supply in the next seven years is the next big change in the company’s capital allocation strategy. This investment is believed to be as big as its previous expansion in the telecom and consumer business.

Big bet on AI infrastructure

During the recently held India AI Impact Summit, Reliance Industries Chairman Mukesh Ambani talked about the group’s AI investment plan. This will include building a multi-gigawatt AI-ready data center. They will be supported by up to 10 GW of renewable energy, energy storage and chip infrastructure. According to the plan, an initial capacity of 120 MW is expected to be commissioned in the second half of 2026, after which it will be expanded in phases.

Morgan Stanley estimates that the first 1 GW phase may require capital expenditure of $12 to $15 billion. The brokerage said that Reliance generates operating cash flow of about $14 to $15 billion every year from its existing business, which can support this investment.

Better returns expected, returns may be more than 12 percent

The brokerage believes that the proposed ‘intelligence’ business can give better returns to the company compared to its previous big investments. It estimates that the return on capital employed after tax could be more than 12 percent and the return on equity could reach about 18 percent in the next five years, which will be higher than the return on equity from telecom and retail businesses.

On Friday, shares of Reliance Industries closed 0.68 per cent higher at Rs 1,419.10. The stock has gained 15.3 percent in the last one year, which is better than the Nifty’s gain of 11.7 percent. The market capitalization of the company has reached approximately Rs 19.1 lakh crore.