Reliance Industries Ltd (RIL) is making huge waves today. Taking itself and the market indices to historical new heights, RIL hit a new high today at Rs.1571.85. Its market cap is so close to hitting Rs.10 lakh crore.
The reason for this new found passion for RIL - along with Vodafone, Reliance Jio said that it too would take measures including appropriate increase in tariffs in next few weeks. A tariff hike means obviously better margins and with other telcos bleeding, RIL is making the most of the opportunity.
Following this announcement, FII, Credit Suisse promptly put out a report, hiking the target price to Rs.1400 from Rs.1210 while maintaining its ‘neutral’ stance. It is of the opinion that a tariff hike will result in annual cash flow increase of more than $1.5 billion, which in turn means it will turn zero debt, as targeted, by FY21.
Meanwhile, it added 69.8 lakh users in September, lower than 84.4 lakh users in August