Mumbai: Brokerage firm CLSA on Thursday said that the new tariffs announced by Reliance Jio are 7-20% lower than the new rates offered by its competitors.

In a note, CLSA said that it expects Jio's profits to rise further due to likely higher average revenue per user (ARPU) among other reasons.

"Despite this hike, Jio is at a 7-20% discount to its competition, maintaining its strong relative positioning. We see a good chance of further upside to Jio's profit as the tariff hike on the JioPhone is still awaited, interconnect costs may fall below our forecast and ARPU may be higher as customers may prefer 28-day over 84-day plans," it said.

The brokerage firm also raised target price for Reliance Industries (RIL) from 1,710 to 2,010. On Thursday, shares of the RIL closed at 1,550.30, lower by 2.25 or 0.14% from the previous close.

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