According to Credit Suisse, Reliance Jio’s enterprise value (EV) is estimated to rise to $88.5 billion, propelled by the growth from Jio’s non-wireless businesses.

Jio’s non-wireless business includes health, education, agri-tech, home broadband, enterprise services, internet of things (IoT), and its app suite.

Credit Suisse valued Jio’s non-wireless verticals at $23.7 billion. It has also assigned an EV of $17.5 billion for non-wireless verticals and increase Jio’s EV to $88.5 billion. It has even upped parent Reliance Industries limited’s (RIL) target price (TP) to Rs 1,690 from Rs 1,375.  According to the firm, Jio’s earnings before interest, taxes, depreciation and amortisation (EBITDA) could be significant at $1.5 billion- $2.0 billion.

It expects the telco to gain 500 million subscribers from its current 388 million and also clock in an average revenue per user (ARPU) of Rs 200, from Rs 130.6 of the fourth quarter (Q4) of financial year (FY) 2020. Further, Credit Suisse expects most of the volume increase for Jio to come from upgrading 2G users who still constitute 35 per cent of the total subscriber base. As these users upgrade, the firm expects almost half of them to come to Jio through either JioPhone or smartphone plans.

However, the report did not specify any timelines for Jio to reach the expected growth estimates.