Den Networks Ltd: Buy

CMP: Rs.47.60
Targets: Rs.66/72
SL: Rs.44
Reliance Industries plans of rolling out fiber broadband services​:

On its 42nd annual general meeting (AGM), on August 12, 2019, Reliance Industries Ltd's​ (RIL) chairman and managing director Mukesh Ambani announced details related to the launch of Jio Fiber service, the triple play of broadband, TV and landline.

Jio Fiber users will get free subscription to several OTT platforms. Reliance Jio Infocomm (‘Jio’), a subsidiary of RIL, has built a world-class all-IP data strong future proof network with the latest 4G LTE technology.

Earlier this year, RIL acquired stakes in three leading MSOs, Hathway, Den and GTPL, who have direct relations with over 30,000 local cable operators (LCOs).

Supreme Court verdict on Thursday that hugely widened the scope of adjusted gross revenue of operators and saddled them with mammoth Rs.92,000-crore dues, dealing a huge blow to Vodafone Idea and Bharti Airtel even though RJio was left relatively unscathed. This implies that the verdict is positive for Reliance Industries and in turn to RJIO.

Reliance Jio has a stake in Den Networks Ltd. Hence, it is now a Mukhesh Ambani Group Company.