Reliance Industries stock hits all-time high as Jio unveils new tariffs. Analysts bullish on growth prospects amid strategic moves.
Reliance Industries Ltd (RIL) saw its shares surge by more than 2% to reach a new peak of Rs 3,129 on Friday morning at the Bombay Stock Exchange (BSE), pushing its market capitalization above Rs 21 lakh crore for the first time.
Boost from Jio's New Plans
The stock's rise came on the heels of an announcement from Reliance Jio Infocomm Ltd regarding new unlimited plans set to roll out on July 3. These plans range from Rs 189 per month for 2 GB of data to Rs 3,599 annually for 2.5 GB per day, with plans offering 2 GB per day and above including unlimited 5G data.
Market Reaction and Analysts' Views
Market analysts viewed the tariff hikes positively, aligning with expectations. Jefferies raised its price target for Reliance to Rs 3,580, the highest among analysts, citing a potential 17% upside. They maintained a 'Buy' rating, forecasting robust revenue and profit growth for Jio through FY27.
Morgan Stanley, maintaining an 'Overweight' rating with a target of Rs 3,046, noted that the tariff adjustments were in line with predictions. They anticipate new revenue streams from energy initiatives by year-end and do not expect further tariff hikes until FY27.
Impact on the Telecom Sector
Kotak Equities noted that the tariff hikes were in line with their expectations and had already factored them into their estimates. They highlighted Jio's move to limit unlimited 5G data usage to higher-tier plans, which could lead to increased revenue from heavy data users. They also predicted similar tariff increases from competitors like Bharti Airtel and Vi shortly.
Analyst Consensus and Market Sentiment
Of the 35 analysts covering Reliance, 28 recommend 'Buy,' five suggest 'Hold,' and two advise 'Sell.' The consensus reflects confidence in Reliance's growth trajectory, bolstered by strategic moves in the telecom sector and expectations of strong financial performance in the coming years.
This surge in Reliance Industries' stock underscores investor optimism fueled by Jio's strategic tariff adjustments and anticipated growth across its diversified business segments, including telecom and new energy initiatives.
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