Why Reliance shareholders are celebrating Anant Ambani-Radhika Merchant wedding
Year-to-date, shares of the energy-to-telecom conglomerate have surged nearly 24%, reaching Rs 3,199 on July 12. They hit an all-time high of Rs 3,217.90 on July 8, 2024.
- Jul 12, 2024,
- Updated Jul 12, 2024 5:26 PM IST
The marriage of Anant Ambani and Radhika Merchant has not only delighted the country’s two wealthiest families but also thrilled shareholders as company shares soar to record highs.
Year-to-date, shares of the energy-to-telecom conglomerate have surged nearly 24%, reaching Rs 3,199 on July 12. They hit an all-time high of Rs 3,217.90 on July 8, 2024. In comparison, the benchmark BSE Sensex gained around 11.50% during the same period. Analysts on Dalal Street foresee further upside for RIL shares.
As of March 2024, the company had 3,463,228 public shareholders.
Recently, BOB Capital Markets raised the target price for RIL shares to Rs 3,610 from Rs 3,380 after Reliance Jio announced a substantial tariff hike of 13-25% across its plans, effective July 3, 2024. This new target suggests a 13% upside from the current market price of Reliance Industries.
“With Jio increasing telecom tariffs from July 3 and Bharti Airtel following suit, the sector is poised to benefit from the normalization of tariffs to more reasonable levels,” BOB Capital Markets stated in a report.
Motilal Oswal Financial Services also remains positive on Reliance Industries, with a target price of Rs 3,275. “The company raised tariffs for prepaid and postpaid plans but excluded Jio phone users.
This hike is expected to boost the average revenue per user (ARPU) by 15% to Rs 206, with an exit ARPU of Rs 223 in FY25. This should drive a 17% increase in our EBITDA estimates, assuming no major subscriber loss for RJio, as its plans remain the cheapest and offer the best network among all telcos. We project a 23% EBITDA CAGR over FY24-26E and expect similar tariff hikes of 15-20% by Vodafone Idea and Bharti in the near term,” stated Motilal Oswal Financial Services in their report.
The marriage of Anant Ambani and Radhika Merchant has not only delighted the country’s two wealthiest families but also thrilled shareholders as company shares soar to record highs.
Year-to-date, shares of the energy-to-telecom conglomerate have surged nearly 24%, reaching Rs 3,199 on July 12. They hit an all-time high of Rs 3,217.90 on July 8, 2024. In comparison, the benchmark BSE Sensex gained around 11.50% during the same period. Analysts on Dalal Street foresee further upside for RIL shares.
As of March 2024, the company had 3,463,228 public shareholders.
Recently, BOB Capital Markets raised the target price for RIL shares to Rs 3,610 from Rs 3,380 after Reliance Jio announced a substantial tariff hike of 13-25% across its plans, effective July 3, 2024. This new target suggests a 13% upside from the current market price of Reliance Industries.
“With Jio increasing telecom tariffs from July 3 and Bharti Airtel following suit, the sector is poised to benefit from the normalization of tariffs to more reasonable levels,” BOB Capital Markets stated in a report.
Motilal Oswal Financial Services also remains positive on Reliance Industries, with a target price of Rs 3,275. “The company raised tariffs for prepaid and postpaid plans but excluded Jio phone users.
This hike is expected to boost the average revenue per user (ARPU) by 15% to Rs 206, with an exit ARPU of Rs 223 in FY25. This should drive a 17% increase in our EBITDA estimates, assuming no major subscriber loss for RJio, as its plans remain the cheapest and offer the best network among all telcos. We project a 23% EBITDA CAGR over FY24-26E and expect similar tariff hikes of 15-20% by Vodafone Idea and Bharti in the near term,” stated Motilal Oswal Financial Services in their report.