Reliance Industries - Tariff Hike Of ~20% Largely Inline; Maintain Hold: Systematix

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Reliance Jio has launched its long-awaited new tariff plan, slated to take effect from July 3rd, 2024, featuring price increases ranging from 12.5% to 26.7% across various plans, with an average tariff hike of approximately 19-20%. Jio, established in 2016, experienced its first significant tariff increase in December 2019, which raised prices by 20-40%. Another round of tariff hikes followed in December 2021, resulting in an increase of nearly 20%. These adjustments align with earlier expectations, as we had previously indicated that a subsequent tariff hike was anticipated post-elections. Additionally, in the recent spectrum auction by the DoT, Jio secured an additional 1800MHz band spectrum (at a cost of Rs 9.7 billion) for Bihar and West Bengal.Our projections foresee a 13% average revenue per user increase for FY25 and 6% for FY26, in line with recent tariff adjustments, with benefits expected mainly in H2 FY25 and extending into FY26. Estimated ARPU stands at Rs 205/Rs 218 for FY25E/FY26E, up from Rs 181.4 in FY24. Ebitda growth forecasts remain unchanged at 39% for FY25E and 16% for FY26E. The industry is poised to benefit from the tariff hike, with similar adjustments anticipated from competitors like Bharti Airtel and Vodafone Idea. We project an Ebitda/profit after tax compound annual growth rate of 10.2%/12.2% from FY24 to FY26E. Reflecting positive sentiment, our SOTP-based target price rises to Rs 3,050 from Rs 2,950, supported by a higher enterprise value/Ebitda multiple of 15 times for FY26E, up from 14 times, for the Jio business. Recent declines in GRM and a retail sector slowdown to keep the upside potential limited. Consequently, we maintain a Hold recommendation on the stock..Click on the attachment to read the full report:.Godrej Properties - Ticking Off Boxes Across Key Parameters: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Reliance Industries - Tariff Hike Of ~20% Largely Inline; Maintain Hold: Systematix

Maintain Hold with a new target price of Rs 3,050

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Reliance Industries - Tariff Hike Of ~20% Largely Inline; Maintain Hold: Systematix

Maintain Hold with a new target price of Rs 3,050

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