Goldman Sachs says Reliance Industries could potentially emerge a $100 billion company by fiscal 2017 from its current market capitalisation of around $46.6 billion.
According to Goldman, to achieve that Reliance needed to get government approvals on investments and gas prices, restrict its focus to core businesses, and return some of its surplus cash in the form of dividends or buybacks, among other measures.
Goldman said in a note today that investor concerns such as returns from new capital spending or the cyclical downturn had already been largely discounted, arguing further that current share price was giving little credit to management for refocusing investment in core activities and its potential impact on cash returns.
The bank maintains a "buy" rating on the stock and raises it sum-of-the-parts target price to Rs936 from Rs870 to reflect improved refining and exploration and production valuations.
Reliance shares were up last month 1.3 per cent at Rs810.10.