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    Analysts bullish on JioFiber, see Reliance stock doubling in a few years

    Synopsis

    Deven Choksey believes Reliance Jio can target close to 70-100 crore connections.

    ETMarkets.com
    Mumbai: Analysts on Dalal Street gave thumbs up to JioFiber service, which was launched on Thursday by Reliance Industries, saying stock of the company can double in the next few years.

    Reliance Jio, the telecom arm of RIL announced the launch of JioFiber across 1,600 cities in India, and analysts are upbeat on the prospects of the stock.

    “This is disruptive. The consumers targeted use data in a big way,” said Deven Choksey, Group Managing Director at KR Choksey Investment Managers.

    The expert believes that the Mukesh Ambani-led company can target close to 70-100 crore connections.

    "The Arpu (average revenue per user) targeted is 20 times more than the current figure. Over the next three years, revenue from this business might add up to Rs 2 lakh crore with Ebitda of Rs 1-1.25 lakh crore," he said.

    Choksey sees stock of Reliance doubling in the next three years.

    Other analysts are also bullish on the stock.

    Gaurav Dua, Senior Vice-President and Head of capital Market Strategy & Investments at Sharekhan said: “What you need to remember is that around three years back, a lot of analysts were ascribing a negative value to Jio due to huge investments. At present, Jio is valued at Rs 180-200 per share in SOTP (sum of the parts) calculation.”

    According to Dua, Reliance adding more material revenue lines to Jio business was a big positive.

    Launching the service, Reliance pointed out that average fixed-line broadband speed in India is 25 Mbps, while even in America, which is the most developed economy, it is around 90 Mbps.

    JioFiber’s will offer speed in the range of 100 Mbps to 1 Gbps, which will propel India to top five broadband nations globally.

    The service has been launched in six tariff plans, starting from Rs 699 to Rs 8,499.

    “With JioFiber, Jio continues to deliver on its promise of connecting the unconnected while bringing about transformational changes to Indian homes, that it started with its mobility service three years ago, on 5th September 2016,” the company said in a release.

    Upcoming Jio Fiber services include ultra-high-speed broadband (up to 1 Gbps), free domestic voice calling, conferencing and international calling, TV video calling and conferencing, entertainment OTT apps, gaming, home networking, device security, VR experience, premium content platform.

    With JioForever annual plan, users can get Jio home gateway, Jio 4K set top box, television set, subscription to OTT apps, unlimited voice and data.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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