Standard Chartered downgraded Reliance Communications rating to 'underperform' from 'in-line'. It feels that the risks from the tower sharing deal exist from the pace of the ramp-up.
Standard Chartered downgrades Reliance Communications rating to "underperform" from "in-line", saying current valuations "fully reflect the upside from the optic fiber and tower deals."
The Ambani brothers signed a long-expected pact on Friday for their rival telecoms firms to share mobile masts in a contract valued at more than USD 2 billion over several years -- the biggest deal between them since reconciliation.
Also read: RIL, RComm strike Rs 12,000cr tower pact
Standard Chartered says the Reliance Jio tower deal may add 17-22 rupees per share to Reliance Communications' valuations, although risks exist from the pace of the ramp-up.
Reliance Communications' shares have gained 50 percent in 2013 so far compared to India's benchmark index which was flat in the same period.
Reliance Comm stock price
On July 01, 2015, Reliance Communications closed at Rs 62.80, up Rs 0.75, or 1.21 percent. The 52-week high of the share was Rs 147.80 and the 52-week low was Rs 54.50.
The latest book value of the company is Rs 126.35 per share. At current value, the price-to-book value of the company was 0.50.
READ MORE ON Market, Reliance Communications, Standard Chartered, Downgraded, underperform, Ambani, Mukesh Ambani, Anil Ambani
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