Jio Platforms makes strong debut; Nomura initiates coverage with 'Buy' and Rs 1,340 target

Shares of the much-awaited Jio Platforms made a strong debut on the stock market. Investors' eyes remain on the stock after listing. The biggest question before them is whether it will rise further or whether concerns over profit booking will grow, and what they should do.

International brokerage Nomura has initiated coverage of the company for the first time. It has given a 'Buy' rating and set a target price of Rs 1,340. However, this target is below the listing price of about Rs 1,358. At the current price, the brokerage's target therefore implies a downside of about 1.3%.

The Jio Platforms IPO was priced at Rs 1,119 per share. Nomura's target of Rs 1,340 is 19.7% above the issue price, but about Rs 18 below the listing price of Rs 1,358. The returns will therefore be calculated differently for investors who got shares in the IPO and for those who bought from the market after listing. Nomura's target is an estimate, not a guarantee of the share price. Prices can change depending on market demand, valuation and investors' profit-taking.

According to Nomura, Jio is no longer just a company that disrupts the market but has become a leader in the telecom sector. The company's share of the wireless subscriber market is about 42%, while its share of data traffic is estimated at about 60%. It also has a strong presence in the home broadband market. The brokerage expects the company's EBITDA to grow at an average annual rate of 13.5% over the financial years 2026 to 2029.

Nomura says a tariff increase of about 15% in the telecom industry in November-December 2026 could be a major trigger for the company. This is likely to raise average revenue per user. However, the increase is for now only the brokerage's estimate.

Jio's fixed broadband business can also speed up growth. As of June 2026, the company had 28.6 million fixed broadband customers, while Bharti Airtel had 14.7 million. According to Nomura's estimate, once the big round of 5G investment eases, the company's cash flow will improve and it could become net debt-free by financial year 2029.

What, then, should investors do? Those who buy the stock after listing should not decide only on the basis of the initial surge. Though Nomura's 'Buy' rating is positive about long-term prospects, its target price of Rs 1,340 is still lower than the current listing price.