Reliance Industries Ltd: Is the 'Reliance" on 'Jio' Justified?

Jio

  1. Tech or not, fact is largest telecom player in India and bell’s and whistles that tells a complete story( content - own/ partners, fiber to home, etc) that appeals to investors. As long as ARPU increases - margins will expand disproportionate.

Airtel has 284M users @ ARPU of 154( qoq 14% growth
Jio has 388M users @ARPU of 130( qoq 2% growth)

Airtel has been vocal of 200 ARPU in short term and 300 in mid term. With major capex behind them( barring 5G - which none other can take up except Jio in current balance sheets) - we can safely assume market knows it and hence break neck investments

Loaded with fresh money and rising ARPU - there is lot Reliance can do than they did with debt heavy structure.

Monetization of Oil and Jiomart/Retail is yet to play out. All the ever increasing liquidity in world of contracting economies - fraction of that will be happy to get in Jio and other businesses of Reliance - now a debt free and marquee investor choice in India.

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