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Sorry, missed your message earlier!

Reliance isn't listed in the U.S., hence no mention in my article.

I wouldn't invest in Reliance speculating that it will separate Jio. No doubt, Jio has disrupted the telecom sector and things will never be the same again for incumbents, but I am wary about a couple of things, like Jio reporting an operating profit last time.

There appear to be discrepancies in Jio's reporting, mainly that it's capitalizing operating expense like employee costs and showed low depreciation charges, all of which boosted its profit numbers.

Even if I give Jio the benefit of doubt considering that I don't know much about telecom accounting, how long will the company be able to sustain the dirt-cheap tariff that it's used so far to lap up customers? With negligible switching cost for customers, it'll take Jio a lot to build a loyal customer base. Not to forget that other players like Airtel and Vodafone are already at loggerheads with Jio over its predatory pricing policies.

Basically, there are too many moving parts at Reliance, more so in volatile sectors like oil and gas and telecom, which makes it difficult to build a conviction on the stock. That's what I feel.

Would love to hear your thoughts!

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