CLSA Upgrades Reliance Industries,
Jio announced an up-to-35% hike in its tariff which will boost its Ebitda by US$1.1bn-US$1.3bn. Despite this hike, Jio is at a 7%-20% discount to its competition, maintaining its strong relative positioning. We see a good chance of further upside to Jio’s profit as the tariff hike on the JioPhone is still awaited, interconnect costs may fall below our forecast and Arpu may be higher as customers may prefer 28-day over 84-day plans. We raise our EPS by 1%-8% and target price from Rs1,710 to Rs2,010. Strong near-term quarterly profit due to IMO and tariff hikes and the closure of the fiber and Aramco deals are triggers. BUY.
