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Accumulate Idea Cellular, target of Rs 48: Angel
Angel Broking has recommended an accumulate rating on Idea Cellular with a target of Rs 48. Idea Cellular recorded a strong 59.6% yoy and 18.5% qoq growth in consolidated Top-line in 3QFY2009 driven by an increase in its mobile subscriber base, which grew by an impressive 62.4% yoy and 12.6% qoq.
Angel Broking has recommended an accumulate rating on Idea Cellular with a target of Rs 48 in its January 23, 2009 research report. "Idea Cellular recorded a strong 59.6% yoy and 18.5% qoq growth in consolidated Top-line in 3QFY2009 driven by an increase in its mobile subscriber base, which grew by an impressive 62.4% yoy and 12.6% qoq. Owing to Margin contraction and higher Depreciation (up 72.9% yoy), Idea's Bottom-line for the quarter declined 7.3% yoy."
"We downgrade our 12-month Target Price to Rs 48 (Rs 66), which includes Rs 22 as the value of the core business after downgrading the P/E multiple to 8x (10x), and Rs 26 as the value of its 16% stake in Indus Towers. We recommend an Accumulate on the stock and believe that while the company's recent initiatives will enable it to build a strong business in the longer-term, the increasingly difficult environment is likely to exert significant strain on its key operating and financial parameters, thereby limiting major upsides in the stock price," says Angel Broking's research report.
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To read the full report click on the attachment......
