Prabhudas Lilladher has maintained buy rating on Reliance Communication with target price of Rs 706 in its March 26, 2008 report.  "Rcom has reiterated its plan to launch its GSM services in the remaining 14 circles by December 2008, which will coincide with the unveiling of Mobile Number Portability (MNP). It has already signed conclusive arrangements of USD 1.3 billion for electronic equipment with vendors including Huawei, ZTE and Alcatel Lucent. With the recent fall in price, we believe Rcom is at an attractive valuation. At the CMP of Rs538, the stock trades at a PER of 13.7x and at an EV/EBITDA of 8.7x FY10E earnings. Listing of Reliance Globalcom & Reliance Infratel could be the key catalysts in the mediumterm. Maintain buy," says Prabhudas lilladher ersearch report.

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