<div>Goldman Sachs says Reliance Industries can potentially become a $100 billion stock by fiscal 2017 from its current market capitalisation of around $46.6 billion.<br /><br />To accomplish that, Goldman says Reliance needs 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.<br /><br />Investor concerns such as on returns from new capital spending or the cyclical downturn are already largely discounted, Goldman also argues.<br /><br />BW had reportes earlier, <strong>(Read: </strong><a href="http://www.businessworld.in/web/guest/storypage?CategoryID=37491&articleId=463097&version=1.3&journalArticleId=467494"><strong>Lifeline For RIL's Gas Project</strong></a><strong>)</strong> that the friction between Reliance Industries (RIL) and the government seems to be easing. The government-led management committee (MC) approved field development investments for RIL’s Krishna Godavari (KG) D6 block for three years, but with riders. The MC approved the pending budget for the past two financial years and gave consent to $1.06-billion expenditure for 2012-13. “Whatever the contractor needs technically and administratively to raise production, we will do. Approvals will be given subject to conditions,” petroleum minister S. Jaipal Reddy had said.<br /><br />Sources say, the MC headed by director-general of hydrocarbons Rajiv Nayan Choubey allowed RIL and BP to develop three other gas fields in the same block, but said that the operator would be able to recover costs only after extensive appraisal of these discoveries to establish commercial viability. <br /><br />"Current share price is giving little credit to mgmt for refocusing investment in core activities and its potential impact on cash returns, in our view," Goldman said in the note dated on Thursday.<br /><br />Goldman maintains its "buy" rating on the stock and raises its sum-of-the-parts target price to Rs 936 from Rs 870 to reflect improved refining and exploration and production valuations.<br /><br />Reliance shares last up 1.3 per cent at Rs 810.10.<br /><br /><br /> </div>
