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CLSA retains high conviction buy on Reliance Industries

In a report dated Thursday, the brokerage said the stock is pricing in low expectations from the company's telecom venture Reliance Jio.

, ET Bureau|
Sep 17, 2016, 05.02 PM IST
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MUMBAI: Top brokerage CLSA has retained its 'high conviction buy' on shares of Reliance Industries with a target price of Rs 1,350.

In a report dated Thursday, the brokerage said the stock is pricing in low expectations from the company's telecom venture Reliance Jio. The enticing free service offer being given by Jio till December may allow it to beat our estimate of 25 million subscribers by March 2017 but an appealing network and voice experience in the next few weeks will be key to higher customer retention, said CLSA.

"Achieving a smooth customer on-boarding experience, superior data speed, coverage and trouble-free voice calls along with effective customer care in the next few weeks may be key to subscriber retention beyond free service period till December 2016," said CLSA.

Jio’s network needs to ensure a stable and comparatively superior experience even as it takes the heavy load of customers maximising free usage, it added.

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