Jio Platforms valuation to jump to $110 billion by FY22, propelled by sharp mobile ARPU growth: BofA Securities
Jio Platforms valuation to jump to $110 billion by FY22, propelled by sharp mobile ARPU growth: BofA Securities
Kolkata:
The valuation of Jio Platforms (JPL), the parent company of Reliance
Jio Infocomm, is set to jump 66% to $110 billion by FY22 from around $66
billion now, driven primarily by a sharp rise in the telco’s mobile
business revenues per user, coupled with strong revenue contributions
from the fiber broadband, enterprise business and digital
ad/subscriptions businesses in the next two years, analysts said.
BofA
Securities estimates Jio’s monthly average revenue per user (ARPU) – a
key performance metric -- to grow nearly 53% to Rs 200 by FY22 (from Rs
131 now), coupled with good traction in the broadband/enterprise
offerings and Jio’s apps gaining scale too, which would collectively
boost JPL’s valuation to an estimated $110 billion, implying significant
upside potential. The brokerage also expects a potential Jio IPO to act
as “another catalyst” for Reliance Industries (RIL) stock. Jio
Platforms is a unit of RIL.
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