Buy Jio Platforms; target of Rs 1350: Motilal Oswal

Moneycontrol • 4 days ago

Original source

Key Investment Pillars

  • Leadership in wireless and HBB: Jio Platforms (JPL) is India's largest digital connectivity platform, with its material subsidiary, Reliance Jio (RJio), a leader in India's wireless and home broadband (HBB) markets.
  • Robust subscriber net additions: We expect RJio to add ~36m consumer wireless net adds over FY26-29, driven by market share gains and organic subscriber upgrades from feature phone to smartphone.
  • Tariff hikes: We model ~15% smartphone tariff hike in Mar'27, which could drive an industry revenue CAGR of ~10% to ~INR4t by FY29.
  • Acceleration in HBB subscriber base: We expect RJio's HBB subs base to reach ~50m by FY29, driven by the ramp-up of FWA (JioAirFiber) and fixed broadband.

Thesis Validation Checklist

  • Monitor subscriber net adds: Track the growth in consumer wireless and HBB subscribers to validate our estimates.
  • Tariff hike implementation: Watch for the implementation of tariff hikes and its impact on industry revenue.
  • HBB market growth: Monitor the growth in India's HBB market and RJio's market share.
  • Financial performance: Track JPL's financial performance, including revenue, EBITDA, and PAT growth, to validate our estimates.