From a 3 year perspective, Jio’s ARPU is expected to climb upto Rs. 200 from Rs. 150-160 currently. Expected EBITDA of Jio is also likely to climb to Rs. 600-700 bn p.a. Telecom moving towards duopoly market is also a huge positive.
The significant deleveraging of standalone balance sheet is expected as hydrocarbon business is expected to deliver Rs. 600-650 bn p.a. of EBITDA in steady state which will help Net Debt/EBITDA to decline from 2.8x in FY19 to negligible net debt by FY22.
Company’s retail business is expected to continue growing at >25% CAGR over the next 3-5 years.
At current margins of 8-10%, Retail business is likely to see further valuation upside.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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