ADVERTISEMENT

Nomura raises target price for RIL to Rs 2,020

Nomura raises target price for RIL to Rs 2,020

Published
Hot News
1 min read
Nomura
Mumbai, Dec 6 (IANS) Brokerage firm Nomura has increased the target price for Reliance Industries (RIL) to Rs 2,020 from Rs 1,785.
The increase in target price comes largely on the back of assumption that the average revenue per user (ARPU) of Reliance Jio would increase post the recent tariff hike.
Target price indicates the forecast for the share price with a 12-month time horizon, partly reflecting the analyst's estimates for the company's earnings.
"Our ARPU assumption for Jio increases by 8 per cent for FY20 and 21 per cent for FY2021-22. Driven by our new Jio estimates, our consolidated earnings estimates rise by 4 per cent in FY20 and 10-12 per cent in FY21-22. Our SOTP (sum-of-the-parts valuation-based TP (target price) increases to Rs 2,020 (from Rs 1,785)," a note by Nomura said.
At 10.23 a.m., shares of RIL on the BSE were trading at Rs 1,560 per share, higher by Rs 9.70 or 0.63 per cent from its previous close. Nomura said that the increase in Jio's ARPU would be gradual.
"Compared to Rs 120 in 2Q (July-September), we expect Jio's ARPU to increase to Rs 132 in 3Q and Rs 146 in 4Q. Compared to on average Rs 132 in FY20, we expect Jio's ARPU to rise to Rs 155 in FY'21 and further rise to Rs 170 in FY22."
--IANS
rrb/vin

(This story was auto-published from a syndicated feed. No part of the story has been edited by The Quint.)

(The Quint is available on Telegram. For handpicked stories every day, subscribe to us on Telegram)

We'll get through this! Meanwhile, here's all you need to know about the Coronavirus outbreak to keep yourself safe, informed, and updated.

Liked this story? We'll send you more. Subscribe to The Quint's newsletter and get selected stories delivered to your inbox every day. Click to get started.

The Quint is available on Telegram & WhatsApp too, click to join.

ADVERTISEMENT
ADVERTISEMENT
Stay Updated

Subscribe To Our Daily Newsletter And Get News Delivered Straight To Your Inbox.

Join over 120,000 subscribers!
ADVERTISEMENT