What Morgan Stanley says on RIL, BofA on M&M & JPMorgan on Ashok Leyland

NEW DELHI: Foreign brokerage Morgan Stanley has maintained 'overweight' rating on Reliance Industries (RIL), suggesting a multi-year earnings cycle is fully in play. JPMorgan has maintained a similar 'overweight' stance on Ashok Leyland (AL) as it believe market share trends continue to improve. BofA Securities, on the other hand, has a 'Buy' rating on Mahindra & Mahindra (M&M) as it believes multiple levers can drive earnings and uptick in valuations for the farm equipment maker.

Morgan Stanley said FY23-34 forecasts for RIL are up 2-3 per cent year-to-date but it still sees potential for nearly 10 per cent plus jump in earnings per share (EPS). While suggesting a target of Rs 2,926 for the stock, it said RIL may see 5 per cent Ebitda and 4 per cent earnings growth.


BofA Securities sees a strong case for M&M valuation gap with peers to narrow ahead. Multiple levers can drive auto earnings and valuations, it said while suggesting Ebit CAGR of 16 per cent despite farm business softness.


JPMorgan has raised FY22-24 Ebitda estimates for Ashok Leyland by 7-13 per cent while suggesting a target of Rs 145 on the stock. It sees continued cyclical recovery in the commercial vehicle segment. Market share trends continue to improve, it said.