1409.2000 -15.60 (-1.09%)
NSE Aug 22, 2025 15:31 PM
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Reliance Industries Ltd.
21 Apr 2019, 10:08PM
1409.20
-1.09%
HDFC Securities
We remain positive on Jio's wireless operations. Jio was already capitalizing a portion of its opex. The InvIT transaction raises additional concerns. Till now it was an interplay between PL (opex) and BS (capitalization of expenses). Now it will be off-balance sheet on InvITs. In our view, investors should look beyond the debt reduction and focus on incremental monetization options for the business tariff hikes and/or ancillary revenues. Jios 4QFY19 was marginally weak. To abate investors concerns of persistent capex, cash burn and rising debt, Jio/RIL finally re-engineered its BS with transfer of fiber and tower assets to SPVs majority owned by InvITs. This will lead to ~Rs 600bn de-leveraging for Jio. We value Jio at EV of Rs 2.9tn at 10x FY21E EV/EBITDA (Rs 490/sh of RIL).
Number of FII/FPI investors increased from 2246 to 2280 in Jun 2025 qtr.
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