Reliance Industries Ltd (RIL) share price jumped nearly 3 percent on Monday after the conglomerate's telecom arm, Reliance Jio raised prepaid tariff rates by 20 percent. The increase in prepaid plans of Jio comes close on the heels of rival Bharti Airtel and Vodafone Idea also raising their pre-paid tariffs plans by 20-25 percent.

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RIL stock price quoted at Rs 2,476.05 on NSE, up 2.65 percent at 9.57 am. The stock opened at Rs 2,439.10 and hit the day's high at Rs 2,498.90. So far this year, the stock has given almost 25 percent returns. The index heavyweight stock lifted indices, contributing 190 points on Sensex, offsetting losses from HDFC twins.

Following the hike, the price of Reliance Jio's lowest priced unlimited plan will cost Rs 155 from an earlier Rs 129. The plan offers 2GB data for a month along with unlimited voice and 300 SMS.

Brokerage house Nomura sees upsides to its estimates for Jio as well as for Reliance Industries following Jio’s move to raise tariffs Sunday evening.

“Despite the hikes, we note R-Jio's discount to peers will remain largely intact (25 percent/8 percent on 28/84 days popular 1.5GB/d plan),” the Nomura note to clients said.

Nomura has a buy rating on Bharti with a target price of Rs 855 and a neutral rating on RIL with a target price of Rs 2,850.

Domestic brokerage firm Motilal Oswal has also raised its target price on RIL to Rs 2900, seeing an upside of 20 percent.

"Following Bharti and VIL, RJio finally took 20% tariff hike effective 1st Dec’19. The success of JioPhone, JioFiber, and new digital investments should offer steady growth opportunities. We expect revenue CAGR of 10% and EBITDA growth of 16% over FY21–24E on the back of an 8% subscriber CAGR over FY21–24E," the brokerage note to clients said.

On the gas price ceiling, it further said, "The GoI has already raised the gas price ceiling to USD6.13/mmbtu for 2HFY22. Considering the current high gas price environment, the management believes that the subsequent revision in the ceiling would be even higher. Thus, sustained high production and improved realization would result in better profitability in the segment in the near future."

Talking about the retail arm, MOFS note said, "Reliance Retail’s consistent performance over the last 4-5 years has been stellar and offers a huge scope of growth, given its: a) strong growth of over 25% CAGR; b) enhanced digital capabilities in JioMart, Ajio, among others; and c) new businesses/verticals."

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