Asset monetisation helped RIL create value: Morgan Stanley

Asset monetisation cycles have created 2-3x value for the shareholders of Reliance Industries in the last three decades, with each decade witnessing $60 billion in market cap creation, according to a report by the US-based financial services firm Morgan Stanley.

- DEV CHATTERJEE & SHARLEEN D'SOUZA

While increasing the valuation of RIL's retail business stake to $119 billion, the firm said it estimates the EV/Ebitda (enterprise valuation to earnings before interest and depreciation, tax and amortisation) multiples of 33 times from 32 times to reflect the higher industry peers multiples. "RIL is in its fourth monetisation cycle this century; we see up to US$100 billion (bull case) in value creation as business cycles inflect, new cash flow streams emerge, and multiples catch up," the report said.

RIL shares closed at 3,120 a share with a total valuation of ₹21.11 trillion ($253 billion) as of Monday.