India's richest man's plan to revolutionize its telecom industry with cheap data seems to be working (RIL)

pulse

September 19, 2018 7:56 PM

In the month of July, Reliance Jio added 11.79 million subscribers, 10 times more than all rivals combined.

Mukesh Ambani.

Its subscriber base will reach 300 million by the end of March 2019 — if the trend continues, analysts say.
Watch Reliance Industries trade in real time here.

Exactly two years ago, India's richest man, Mukesh Ambani, planned to revolutionize India's telecom sector with cheap data. His plan seems to be working.

After disrupting India's telecom market with cheap mobile data and calling services, Reliance Jio has been steadily gaining market share. The company offers

Reliance Jio, part of Ambani's Reliance Industries, added

According to a report by Jefferies, Reliance Jio has more than doubled its market share over the past 16 months. As of July, it controlled 19.6% of , up from 9.3% in March 2017.

"If the recent trend continues, by the end of March 2019 it would have a subscriber base of 300 million from the current 225 million," Jefferies analyst Somshankar Sinha said.

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And while Jefferies is impressed with its telecom business, it has a price target for Reliance Industries of 880 rupees — a downside of 27.2% from current levels. That's due to Reliance Industries having different businesses across various sectors, including energy, textiles, natural resources, and retail, which will cause capital expenditures to grow.

Reliance Industries shares are up 31.45% this year.