Jefferies has increased the target price on the shares of Reliance Industries to Rs 1,125 from 1,080 earlier. The shares were trading at Rs 941.55 up by more than 1.1% since previous close. The brokerage firm’s target price implies an upside of nearly 20% from current market prices.

The brokerage firm said that the ramp-up of Jio phone and start of broadband will boost profits going forward. Notably, Reliance Jio, the company’s telecom unit, reported a net profit of Rs 504 crore in just its second quarter of operations as it benefited from the telecom regulator’s decision to halve interconnection usage charges (IUC) effective 1 October and as it added subscribers. Mukesh Ambani’s telecom venture’s EBITDA for the quarter too rose sharply to Rs 2,628 crore from Rs 1,443 crore in the preceding three months, RIL said on Friday.

Interestingly, CLSA has also increased the target price on the shares to Rs 1,125. The firm said that utilisation of off gas crackers and gasification project would be key.

Commenting on the results, Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited said, “I would like to thank all our customers for partnering with us in this revolution which has made India a global digital powerhouse. I congratulate all our employees and partners for the strong performance. Our commitment is to keep pushing newer innovative products which would radically transform customer lives and generate huge societal value. Jio’s strong financial result reflects the fundamental strength of the business, significant efficiencies and right strategic initiatives. Jio has demonstrated that it can sustain its strong financial performance.”