Recommendation: Buy, target raised to Rs 3,580
Key Points: Jio implements tariff hikes of 13-25 per cent, leading to adjustments in FY25-27 estimates by up to 3%. Expected revenue and profit after tax (PAT) CAGR of 18% and 26% over FY24-27, respectively. Minor tweaks in RIL’s FY25/26 EBITDA (0-1%) to incorporate Jio’s performance metrics.
MS on RIL
Recommendation: Overweight, target Rs 3,046
Key Points: RIL’s telecom tariff increases align with base case expectations. The ongoing monetisation of investments remains a strategic focus. Anticipates new energy cash flow streams starting by late 2024. No further tariff hikes are assumed until FY27, but the potential for another 20% increase next year could boost earnings by 10-15%.