Shares of Reliance Industries gained nearly 2 percent intraday on Friday after a brokerage firm reiterated its buy call on the stock.
CLSA, in a report, reiterated its bullish call on the stock with a target of Rs 1,710, implying an upside potential of 29 percent. It places its bet on the developments around its telecom service, Jio.
“After improving voice and data service quality over the past few months, we expect Jio to take the next step to monetisation. Also, we see Jio launching an affordable 4G feature phone within 2QFY18,” the brokerage said in its report.
The brokerage highlighted that the company could be focussed on plugging holes to further improve its services. “…Some speed test results also indicate that data speeds have been at an appreciable level in recent few months. After the past few months of stable services, Jio’s focus should shift to monetisation but it remains to be seen if it goes from the current 66 percent discount to full tariff in one go or in steps,” it added.
Apart from this, the likely start of its fixed broadband service should enable it to expand its target market beyond 4G smartphone users and add legs to its growth, it added. “This would allow Jio to target nearly 30% of Indian mobile data users who still prefer feature phones,” the report added.
Along with the likely start of its fixed broadband service, this should enable it to expand its target market beyond 4G smartphone users and add legs to its growth.
The next big event for the stock could be the annual general meeting, the report stated. “The AGM, possibly in July, could be a key event for further announcements on Jio, projects and future cash use,” the report stated.
The stock has risen around 2 percent in the past one month, while its three-day gain stood at 2.3 percent.
At 09:19 hrs Reliance Industries was quoting at Rs 1,344.45, up Rs 14.55, or 1.09 percent on the BSE. It touched an intraday high of Rs 1,352.00 and an intraday low of Rs 1,342.05.
Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
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