1/n #jiovaluation If we consider jio at 5L mcap the way PE funds ve taken stake, but thing is let's take 20 PE valuation n hence expectation is to generate 25k cr profit. Let's take best case scenario, at peak of best times, airtel with one third market share generated 6k profit.
2/n Let's take another best take scenario that all players were as efficient as airtel n whole telcom industry in best time generated 18000 cr of profit. Let's take one more best case scenario n this industry profit increase to 27000 cr with a 50% jump in ARPU.
3/n Let's us take another best case scenario that jio will take 50% market share and will generate 13500 cr profit from voice n data, core ARPU. To do 25000 cr PAT, they need to do 11,500 cr from all other streams like econnerce, apps, content etc etc . Will they???
4/n Would like to know from those bullish on jio, what's their valuation rationale? Genuinely asking as lot of friends I respect are bullish on this
