On Thursday, shares of Reliance Industries Limited (RIL) rose over 1.50 percent to Rs 1,579.75 apiece on NSE.
On the previous day, Goldman Sachs Equity Research increased its 12-month price target on the stock to Rs 1,850 per share. It also raised the earnings estimate for the company for the financial year 2021-22.
The positive outlook comes on the back of expectation of stronger growth in the conglomerate's telecom arm with prospects of higher revenue and strong subscriber base among others.
The brokerage expects Reliance Jio's average revenue per user (ARPU) to increase from potential tariff hikes and addition to its subscriber base.
"We raise our earnings estimates for FY21/22E and 12-month target price to Rs 1,850 (from Rs 1,635) mainly on our expectation for stronger growth in the telecom business, driven by a higher ARPU from potential tariff hikes coupled with continued strong subscriber addition momentum (44% market share by FY22E)," said Goldman Sachs in a research note.
Further, after market hours on Wednesday, Reliance Jio announced its new "all-in-one" plans that will provide up to 300 percent more benefits to its mobile network consumers. The company has maintained its promise to provide the highest service at the lowest cost as it increases its plan rates by as much as 40 percent. The new tariffs will come into effect from 6 December.