Morgan Stanley - Reliance Capital

Morgan Stanley recommends a OVERWEIGHT on Reliance Capital

Target price of Rs 1540

Reliance Capital is one of the fastest-growing player across its businesses – life insurance, general insurance, AMC, brokerage and distribution of financial products

Financial services industry is likely to grow aggressively in India

Reliance Capital is building scale; will gain sizeable share across businesses

Sum-of-parts-based valuation implies 23% upside – longer term returns can be very significant