Jio's new data plans help Reliance Industries shares touch 10-year high
Reliance Industries shares jumped after its telecom arm Jio announced new 4G data plans on Tuesday. Morgan Stanley had set a target of Rs 1500 per share for RIL but the company is now trading higher than that.
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- Reliance Industries touch over Rs 1,500 per piece
- RIL surpasses Morgan Stanley's target of Rs 1,506 per piece
- RIL surpasses TCS in market valuation
Reliance Jio (RJio) has once again helped Reliance Industries Ltd (RIL) to scale new peaks after the telecom arm announced new 4G plans to take on Airtel, Vodafone and Idea Cellular.
On Wednesday, RIL shares touched a new record of Rs 1,525 per piece – a level which was last seen on January 08, 2008.
RIL also surpassed even Tata Consultancy Services (TCS) in terms of market capitalisation and now holds the top spot.
According to BSE data, market cap of RIL now stands at Rs 491,799.32 crore, followed by TCS at Rs 473,192.75 crore, HDFC Bank at Rs 432,553.96 crore, ITC at Rs 401,507.54 crore and HDFC at Rs 261,473.48 crore.
Reliance Jio on Tuesday announced that its Jio Prime members can enjoy unlimited services for three months with Rs 399 plan. At the same time, the earlier launched Rs 309 plan will provide two months of unlimited Jio services.
Newly announced offers have become effective from July 11, and is be applicable for all new as well as existing subscribers.
ALSO READ: Reliance Jio announces unlimited services for Rs 399 for 3 months
With this blockbuster performance, RIL has also surpassed the target of Morgan Stanley which had revised a new price target of Rs 1,506 per share.
Mayank Maheshwari, Rakesh Sethia and Amruta Pabalkar, analysts at Morgan Stanley had said, “RIL stock has underperformed peers by 60ppt in the past four years as its returns lagged peers'. This is set to change as earnings start from energy projects and telecom monetisation gathers pace. We raise our price target to factor in higher energy earnings and increased clarity on telecom investments."
In a span of four years, RIL has invested about $25 billion in Reliance Jio.
ALSO READ: 5 reasons why Morgan Stanley thinks Reliance Industries shares will reach Rs 1506-level.
Considering, the data tariff, pricing war under the telecom industry presently, MS believes the investment in RJio would reach at $34 billion by end of FY18.
