The brokerage has a price target of ₹2,250 for Bharti Airtel and ₹1,530 for RIL.
The proposed initial public offering of Jio Platforms (JPL) could emerge as a key re-rating catalyst for both stocks, particularly Bharti Airtel. According to Bloomberg, Jio Platforms is reportedly seeking a valuation of around ₹11 lakh crore ($114 billion), broadly in line with Motilal Oswal’s estimate of ₹11.2 lakh crore.
At the proposed valuation, JPL would be valued at around 12 times estimated FY28 enterprise value to EBITDA, compared with 10.3 times for Bharti Airtel’s India business, according to the brokerage.
Motilal Oswal sees limited justification for Bharti Airtel trading at a significant discount to Jio. In addition to its core telecom operations, Bharti offers exposure to Indus Towers, Airtel Africa, data centres through Nxtra and financial services through Airtel Money, the brokerage said.
For RIL, the listing of Jio Platforms could provide greater visibility on the value of its telecom and digital business. RIL currently owns a 66.4% stake in JPL. While this stake could attract a holding-company discount after listing, Motilal Oswal believes the market is already factoring in a discount of around 18-36%.
The brokerage expects the telecom sector to see a tariff increase, with analysts building in a 15% hike in smartphone tariffs in December 2026.
The delay in tariff hikes has weighed on both Bharti Airtel and RIL, with the stocks down 15% and 23%, respectively, year-to-date, compared with a 13% decline in the Nifty.
However, the proposed Jio Platforms IPO and Vodafone Idea’s impending fundraising could strengthen the case for a tariff hike, according to Motilal Oswal.
A Jio Platforms listing at a valuation of around ₹11 lakh crore could also help narrow the valuation gap between Bharti Airtel and Jio, the brokerage said.
Shares of RIL settled 2.49% higher at ₹1,216 on Tuesday, while Bharti Airtel ended 1.35% higher at ₹1,804.