Reliance Industries (RIL) is set to be a major beneficiary of India’s expanding clean energy sector in coming years. A recent report maintains an ‘outperform’ rating on RIL stock, projecting a target price of INR 3,040, representing a potential upside of approximately 20 percent from current levels. India has ambitious targets for renewable energy, aiming to achieve a solar capacity of 280 gw and produce 5 mt of green hydrogen by 2030. In addition, the report expects significant growth in electric vehicle (EV) adoption, with an estimated penetration rate of 5 percent for both passenger vehicles (PV) and commercial vehicles (CV) and 21 percent for two-wheelers (2W).
The clean energy sector in India presents a substantial market opportunity, with a projected total addressable market (TAM) of USD 30 billion by 2030, compared to the current USD $10 billion. Looking ahead, TAM could reach USD 200 billion by 2050, with cumulative spending on clean energy amounting to an impressive USD 2 trillion. RIL, as a key player in the Indian energy landscape, is well-positioned to capitalise on this growing market opportunity. With its diverse business portfolio, including expertise in refining, petrochemicals, and telecommunications, RIL has the capabilities to expand its presence in the clean energy sector and drive innovation.
RIL has already demonstrated its commitment to clean energy through various initiatives. The company has made substantial investments in renewable energy projects, including solar and wind power installations. Additionally, RIL has ventured into the electric vehicle market with the launch of its own EV charging infrastructure and is actively exploring opportunities in green hydrogen production.
The potential growth of the clean energy sector aligns with India’s broader sustainability goals and its commitment to reducing carbon emissions. As the country continues its transition towards a greener economy, RIL’s strategic positioning and investments in the clean energy space are expected to contribute significantly to its future success.
