Japanese brokerage Nomura has initiated coverage of Jio Platforms with a Buy rating and a target price of Rs 1,340 per share, implying nearly 20 percent upside from the IPO price of Rs 1,119.
The brokerage expects steady tariff hikes, growth in home broadband, and improving free cash flow to support the telecom company's performance as its shares debut on October 28.
Nomura estimates Jio Platforms' EBITDA will grow at a compound annual growth rate (CAGR) of 13.5 percent between FY26 and FY29.
Nomura identified home broadband as Jio's second growth engine, supported by its extensive network infrastructure and market leadership.
At the IPO press conference earlier this month, Managing Director Akash Ambani outlined Jio's strategy to increase revenue realisation per customer by introducing additional digital services rather than relying solely on higher data tariffs.