ewsba.se
Jio Platforms share price rose as much as 3% in Monday's trading session after the company reported its first quarterly results on Friday after strong listing last week.
Jio Platforms shares opened at ₹1,465 apiece today, as compared to previous close of ₹1,431 on Friday last week and touched an intraday high of ₹1,475 on 2 November.
The results follow Jio Platforms' stock market debut on October 28, when its shares listed at ₹1,358 apiece, marking a 21.36% premium over the IPO issue price of ₹1,119.
Revenue from operations increased 11% YoY to ₹40,475 crore from ₹36,332 crore in the corresponding quarter last year. On a quarter-on-quarter (QoQ) basis, net profit grew 8% from ₹7,765 crore reported in the June quarter, while revenue registered a 3% increase.
Brokerage firm Motilal Oswal has reiterated its ‘buy’ rating on Jio Platforms share with a revised target price of ₹1,515, seeing an upside potential up to 6%.
“We reiterate our BUY rating on JPL with a revised TP of INR1,515, premised on DCF-backed ~12.2x FY29 reported EBITDA, driven by higher incremental EBITDA margins and faster-than-expected inflection in FCF,” the firm said.
The brokerage firm further added that near-term share price movements may remain volatile due to the limited free float of less than 3%. However, the brokerage remains structurally positive on the Indian telecom sector, anticipating a smartphone tariff hike of around 15% in the near future.
Garg further recommended to to HOLD for existing investors and WAIT for fresh investors, rather than chase the stock after its sharp debut.
“The long-term business outlook remains constructive, but the next leg of share-price appreciation will depend on sustained ARPU improvement, successful monetisation of digital services, margin expansion and consistent cash-flow generation. Since the stock has only recently been listed, its technical history is too limited to establish dependable support and resistance levels; therefore, investment decisions should currently be driven more by business performance, valuation and quarterly execution,” Garg said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
Catch all the Business News , Market News , Breaking News Events, JIO IPO Listing Today LIVE and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.