“The way we see Reliance Industries Ltd (RIL), it has a core business which is O2C, where value unlocking is on the cards and hopefully that will continue to grow on a sustainable basis,” said Harshvardhan Dole, vice president of institutional equities at IIFL, in an interview with CNBC-TV18.

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The company has successfully diversified into high growth businesses such as retail and telecom.

“On the retail side, the way things are, they are well-poised to triple their revenues in the next five years if the acquisition such as Future etc. comes through ahead of time. In telecom, a lot will depend on the launch of the phone with Google and all eyes are out there. The two growth engines are doing reasonably okay and if all things go well, Reliance should continue to compound the earnings at 15 percent CAGR from here till next three years or so. So RIL continues to be our core holding in the portfolio,” he explained.

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On T-Mobile Netherlands news, he said, “$5-5.5 million is a materially large sum. One would have to see in detail as to what is the rationale for making an overseas foray and acquiring a company, which is relatively insignificant to the opportunity that you have in India. I don’t want to speculate anything at the moment. If at all the event has to unfold, let it unfold, we will analyse it when more details are available.”

He is keenly watching the structure of the RIL-Aramco deal. “One is the value unlocking, which is on the cards and we got to know that due diligence by Aramco is underway and we are keenly watching as to what is the structure of the deal and what is the enterprise value which is being pegged in regard to that particular transaction,” he mentioned.

For the full interview, watch the accompanying video.

Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

(Edited by : Dipika Ghosh)