Jio Platforms share price up 28% from IPO price. Here’s what these 4 brokerages are saying
ETMarkets.comFour brokerages see further growth potential in Jio Platforms, driven by tariff hikes, 5G monetisation and digital services.
Jio Platforms emerged as India's second-largest listed company by market capitalisation on its debut, after listing at Rs 1,358. The listing valued the company at around Rs 12.5 lakh crore, placing it ahead of rival Bharti Airtel.
Investor demand for the IPO was strong, with the issue fully subscribed within 100 minutes of opening. The Rs 5,500 crore portion reserved for qualified institutional buyers (QIBs) was subscribed within the first 10 minutes. By the close of the third day, the IPO had received subscriptions of 22.2 times the shares on offer, while the QIB portion was subscribed 70.55 times.
4 brokerages, all bullish on the stock
Japanese Nomura was the first brokerage to initiate coverage. It assigned a Buy rating and a target price of Rs 1,340 from the IPO price, a level the stock has already eclipsed. Analysts say that due to the company’s extensive 5G coverage, data usage per subscriber is 27% higher than Airtel's. Further, Jio’s lowest monthly churn rate among peers at 1.6% position it well to narrow the average revenue per user (ARPU) gap with Airtel. Nomura says ‘the disruptor is now the leader of the industry’.Nomura analysts estimate that the company is set to become debt-free by FY29. Net debt-to-equity, including deferred payment obligations, declined to 0.37 times in FY26 from 0.56 times in FY24. The brokerage expects Jio to become net debt-free by FY29.
With most of its 5G investment cycle behind it, Jio is expected to reduce capital expenditure (capex), with capex declining to around 23% of revenue in FY26 from 35% in FY25. This is expected to release significant cash flow and drive a sharp improvement in free cash flow (FCF).
Domestic brokerage Motilal Oswal initiated coverage with a Buy rating and a target price of Rs 1,350, labelling the company as ‘Gateway to digital India.’
At both the IPO price and the current market price (CMP), Jio is valued at par with Bharti Airtel's India business, excluding Indus and Bharti Airtel's minority interests, based on Motilal Oswal's estimates, the brokerage said.
Motilal believes Jio could command a premium to Bharti Airtel's India business in the near term, supported by its market leadership, greater influence over industry tariffs and a free float of less than 3%. However, its earnings and valuation estimates remain highly sensitive to growth in wireless ARPU.
Dolat Capital says Jio Platforms is becoming more than a telecom company. The company's next next phase may depend less on adding mobile subscribers and more on monetising the digital infrastructure it has built, as tariff repair, 5G upgrades, home broadband and enterprise services push the company toward an integrated telecom-and-technology model.
Dolat Capital initiated coverage on Jio Platforms with an 'Accumulate' rating and a target price of Rs 1,435. The shares, which listed at a 21% premium on Wednesday, gained another 5% in morning trade to hit a high of Rs 1,490 on the BSE.
The brokerage expects Jio Platforms to evolve into an "integrated telecom cum tech play" as it scales up and monetises its investments in emerging businesses.
Dolat Capital projects Jio Platforms' revenue, EBITDA and adjusted profit to grow at compound annual growth rates of 13%, 15% and 21%, respectively, between FY26 and FY29. Growth is expected to be driven by tariff hikes, premiumisation, 5G monetisation and usage-based pricing, alongside expansion in home broadband, enterprise services, digital products and international partnerships.
Affordability is Jio's digital springboard, says Elara Capital. The brokerage has a Buy rating on the counter. Elara analysts expect mobility to remain the primary driver of revenue and profitability. Subscriber additions are projected to grow at a CAGR of 3% during FY26-29E, supported by affordable plans, an extensive network and low churn.
Elara also expects a tariff hike of 12-15% in H2FY27E. Combined with migration from 2G to 4G and 5G, prepaid-to-postpaid upgrades, premiumisation, higher data consumption and bundled digital services, this is expected to lift ARPU from Rs 214 in FY26 to Rs 257 in FY29E.
Affordable data continues to underpin Jio Platforms' ecosystem for consumers and enterprises. The company uses its customer base and distribution platforms to integrate third-party services, lower customer acquisition costs and deepen customer engagement.