Reliance Industries (RIL) rose 0.80% to Rs 1,549.50 after a foreign brokerage retained its 'buy' rating on the stock while raising the target price to Rs 1,700 from Rs 1,565 per share.
The brokerage reportedly stated that the operating trends for both telecom and organised retail remained strong. Telecom and retail were set to drive near-term upside potential and Jio's plan to raise tariffs offered scope for rapid improvement in profitability, it said.Earlier this week, the Mukesh Ambani-controlled Reliance Jio Infocomm said it will increase tariffs in the next few weeks in a manner that does not adversely impact data consumption or growth in digital adoption and sustains investments.
A foreign broker said that tariff increase by Reliance Jio could bring an annual cash flow of more than $1.5 billion, which will help the company achieve zero net debt target by FY21.
Meanwhile, the Telecom Regulatory Authority of India (TRAI) data showed that Reliance Jio added 69.83 lakh mobile subscribers in September this year to take its subscriber base to 35.52 crore. In contrast, Vodafone Idea and Bharti Airtel lost over 49 lakh users during the month under review.
The RIL stock was trading in the range of Rs 1,539.50 to Rs 1,569.60 so far during the day. The stock hit a record high of Rs 1,571.85 on Wednesday, 20 November 2019.
RIL's consolidated net profit rose 18.3% to Rs of Rs 11,262 crore on 3.6% increase in net sales to Rs 1,48,526 crore in Q2 September 2019 over Q2 September 2018.
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