- By Aditya Pratap Singh
- Fri, 28 Jun 2024 02:40 PM (IST)
- Source:JND
Reliance M-cap: The shares conglomerate Reliance Industries (RIL)surged over 2% on Friday to hit an all-time high of Rs 3,129 in day trade on the BSE. following the rally, the market capitalization of Reliance Industries jumped to Rs 21,000 crore for the first time. The surge in RIL stock was seen after Reliance Jio Infocomm Ltd announced new unlimited plans from July 3.
Reliance Jio tariff Hike
Jio, the biggest Telecom operator in India decided to hike tariff rates. The tariff hikes were largely in line with market expectations. However, brokerages believe that Jio taking the lead in raising tariffs and shifting focus to improving returns on investments is a sentimental positive.
Also read: Airtel Hikes Mobile Tariffs By 10-20%, Effective From July 3
On June 28, Jefferies raised its price target for Reliance to Rs 3,580 from Rs 3,380, suggesting a 17% upside from Thursday's close, the highest target on the Street.
The brokerage maintained a 'buy' rating, estimating Jio's revenue and earnings will grow at an annualized pace of 18% and 26%, respectively, from FY24 to FY27. The tariff hike is largely in line with Kotak Equities' expectations (20% as of June 2024) and is already built into its estimates. Moreover, R-Jio has also restricted unlimited 5G data usage to 2GB/day plans and above (versus Rs239 and above previous plans), which may lead to increased turnover by higher data consumers.
The local brokerage expects that Bharti Airtel and Vi will also hike tariffs soon, and among them, the former has already announced a 10-21% tariff hike.
Also Read: Stock Market: Sensex, Nifty Hit Fresh All-Time Highs In Early Trade
