The shares of Reliance Industries were trading in the green on Friday after the conglomerate’s subsidiary Jio Platforms Limited (Jio) entered into a regional partnership with Manchester City (Man City) on January 05, 2022, enabling Jio to become the Football Club’s Official Mobile Communications Network Partner in India.
Jio and Man City will collaborate on a variety of experiences that fans will be able to access through Jio’s digital ecosystem, consisting of JioTV, MyJio, Jio STB, JioEngage and other applications, in addition to exclusive giveaways and in-market activities. Man City’s OTT platform CITY will be integrated into the JioTV platform, providing Indian fans further access to exclusive club content.
With this new pact, it appears that Reliance is keen to make inroads in the global sports business. Earlier, it secured the digital rights of India’s top cricket league for $ 3.1 billion. It appears that it is relying on its dominant telecom network to win partners.
The company’s shares were trading at ₹ 2529.35 apiece at 02:52 PM on Friday. Global brokerage Jefferies has given a target of ₹ 3,100 on the shares of Reliance Industries translating to an upside of 22.21% as compared to its share price.
It said that in a bull-case scenario, the refining-to-retail conglomerate can rally to reach a target of ₹ 3500.00 apiece. This translates to an upside of 37.97% as compared to its current share price.
The brokerage expects Jio to deliver 19% YoY revenue growth led by tariff hikes in the mobile segment and continued traction in the non-mobile segment.
“We forecast 18% EBITDA growth in FY24E with 21% in Retail on the back of floorspace growth and 24% in Jio on tariff hike and home broadband traction. Valuation has moderated imputing little value to green energy in our view. Borrowings likely will rise,” Jefferies said in a note.
Jefferies said that it expects gradual recovery in the company’s petrochemicals margins in the second half of financial year 2022-23 as Chinese demand is recovering.
Written by Simran Bafna
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