Reliance Industries rose 3.44% to Rs 1561.80 after a foreign brokerage maintained neutral rating on the stock, while raising its target price to Rs 1,400 from Rs 1,210 per share.
The brokerage reportedly said that tariff increase by RIL's telecom arm, Reliance Jio Infocomm, could bring an annual cash flow of more than $1.5 billion, which will help the company achieve zero net debt target by FY21. The brokerage has raised FY20/21/22 EPS estimates by 15%/12%/20% and increased EV for Jio to $67 billion.
Shares of Reliance Industries (RIL) rose as much as 4.10% to hit an intraday high of Rs 1571.85. The company is inching towards the Rs 10 lakh crore market-cap, as currently it stands at Rs 9,90,240.02 crore.
Reliance Jio on Tuesday announced that it will join rivals Bharti Airtel and Vodafone Idea in raising mobile tariffs. Jio said it will take measures including appropriate increase in tariffs in the next few weeks in a manner that does not adversely impact data consumption or growth in digital adoption and sustains investments.
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.
Last week, Moody's Investors Service affirmed RIL's Baa2 domestic long-term issuer rating and foreign currency senior unsecured rating. At the same time, Moody's has affirmed the Baa2 backed domestic currency senior unsecured debt ratings on the USD denominated bonds issued by Reliance Holding USA, Inc., with a guarantee from RIL. The outlook on the ratings above is stable.
RIL's consolidated net profit rose 18.3% to Rs 11,262 crore on 3.6% rise in net sales to Rs 148526 crore in Q2 September 2019 over Q2 September 2018.
Reliance Industries is an Indian multinational conglomerate company. The company owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications.
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