Reliance Industries can add up to $100 bn to market cap: Morgan Stanley

Reliance Industries Ltd can add up to USD 100 billion to its market capitalisation in its fourth monetisation cycle this century as new cash flow streams emerge and valuation multiples catch up, Morgan Stanley said in a report.

The oil-to-telecom conglomerate has seen monetisation cycles deliver 2-3x value creation for shareholders in the past nearly three decades, with each decade seeing USD 60 billion+ in market cap creation.

RIL is in its fourth monetisation cycle this century.

"Monetisation 4.0 is different; it is supported by the business upcycle, domestic demand, and lower competition," the brokerage said. "RIL's fourth monetisation cycle (since 1997) should add up to USD 100 billion to USD 60 billion increase in market cap year-to-date."

Key to this has been RIL's market share gains, complete integration, and most importantly, ability to execute above investor expectations each time the company has re-imagined its business.

This monetisation follows the USD 60 billion in ..