Feb 16, 2017 04:16 PM IST | Source: Moneycontrol.com
Hold Idea Cellular; target of Rs 105: ICICI Direct
ICICI Direct recommended hold rating on Idea Cellular with a target price of Rs 105 in its research report dated February 14, 2017.
ICICI Direct's research report on Idea Cellular
The company reported a net loss of Rs 383.9 crore (vs. expectation of a loss of Rs 284.4 crore) owing to a miss at the operating level. The losses would have been much higher but for the lower-than-expected interest costs and tax credit availed by the company.
We await further details on the prospective merger and subsequent equity infusion, which could be made by Idea promoters if they stick to fundamental premise of equal rights for Aditya Birla group and Idea in the combined entity. We maintain HOLD with a revised target price of Rs 105 on a DCF based methodology.
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