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