Stock analysis: RIL hopes to tether back telco clients, Jio break-even seen

Analysts believe it may not be difficult to retain 50% of subscribers under Prime membership plan

With clarity emerging on commercial launch of Jio's telecom services, the Street pushed up Reliance Industries Limited (RIL)'s stock by almost 11 per cent on Tuesday. Part of the surge could be down to most market participants factoring in a continuation of freebies or expecting much lower rates than those announced on Tuesday. Moreover, details suggest the rates offered are attractive and if Jio is able to hold back most of its subscribers, it could achieve break-even earlier than expected. As a result, analysts have raised their valuation for RIL's telecom business. Jio is a relatively new telecom player.

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