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.
Investor concerns such as on returns from new capital spending or the cyclical downturn are already largely discounted, Goldman also argues.
"Current share price is giving little credit to the management for refocusing investment in core activities and its potential impact on cash returns, in our view," Goldman said in a note on Thursday.
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.
Copyright: Thomson Reuters 2012