Mukesh Ambani’s Reliance to hit $100 billion m-cap in 4 years, says Morgan Stanley

Mukesh Ambani-led Reliance Industries is on the course to more than double its market capitalisation from $47 billion to $100 billion.

Driven by higher GRMs, Reliance Industries has been outperforming the Sensex since one year now.

As per a Morgan Stanley report, Reliance Industries will hit $100 billion in the next 3-4 years.

"This is just the start. RIL is nearing the completion of its largest-ever capex programme of $46 billion over F14-17, paving the way for a multi-year cycle of strong FCF generation," the report stated.

Morgan Stanley maintains an overweight rating on the stock with a 12-month target price of Rs 1,329, which translates into an upside of 37% from current levels in the next 12 months.

The five reasons stated in the report for Reliance Industries’ capex surge are strong FCF generation starting FY17, Telecom (Jio's) turnaround is key, increase in oil prices to $60/bbl, Reliance Retail revenue to more than double and attractive valuations.