RIL share price may further surge after tariff hike; this analyst tells why

By: |
December 18, 2019 1:41 PM

Reliance Jio would also gain from the fact that it doesn’t have pending AGR dues, the analyst said.

reliance industries Ltd, ril telecom assets, RIL shares, Brookfield Infrastructure Partners investment in RILTRAI came out with a consultation paper on setting a floor price for telecom tariffs. The paper comes after industry body COAI urged the regulator to fix a floor price for data services.

The share price of Mukesh Ambani’s Reliance Industries Ltd (RIL) may surge further after tariff hike by Reliance Jio, Rajiv Sharma, head of research, SBICAP Securities told CNBC TV-18. Reliance Jio would also gain from the fact that it doesn’t have pending AGR dues, Rajiv Sharma also said, adding the target price for RIL is Rs 1,970. Reliance Jio, Vodafone Idea, and Bharti Airtel recently hiked data and call prices. Even Bharti Airtel may see more upside going forward, he added. However, unless some relief is awarded to Vodafone Idea on the AGR issue, SBICAP is not positive on the telecom operator. TRAI on Tuesday extended the interconnect usage charge (IUC) regime by year. The telecom regulator also released a consultation paper on the introduction of a floor price for telcos. The floor price on tariffs of telecom operators may be positive for the companies and also attract investors, Rajiv Sharma told CNBC TV-18.

TRAI came out with a consultation paper on setting a floor price for telecom tariffs. The paper comes after industry body COAI urged the regulator to fix a floor price for data services. Trai has come out with a list of 19 questions wherein it wants to know what could be the methodology to fix a floor price for data and voice services as well as bundled offers. The regulator also wants to know if there should be a floor-ceiling also so that interest of consumers could be safeguarded.

Also read: India’s $5 trillion economy goal a challenging task; IMF’s Gita Gopinath tells why

RIL posted the highest-ever quarterly consolidated profit of Rs 11,262 crore in Q2FY20, beating market expectations. The profit increased 11.46 per cent sequentially and 18.34 per cent on a year-on-year basis. The growth was partly supported by higher other income and lower tax costs.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1IDBI Bank share price surges 15% on Cabinet’s in-principle nod to strategic divestment
2Sanjiv Bhasin’s stock picks for next 5 months; sees Nifty at 15,000, Bank Nifty near 34,250 by May-end
3Brookfield REIT’s dividend yield catches analyst eye; IIFL Securities initiates coverage with ‘Buy’