Buy Tulip Telecom; target Rs 1020: IIFL

ALSO READ See previous views by IIFL See what other Experts & Brokerages are saying about Tulip Telecom See messages about Tulip Telecom Tulip Telecom BSE | NSE 10/02/12 Are Mutual Funds betting on Tulip Telecom?

IIFL has recommended buy rating on Tulip Telecom with a 12 month target of Rs 1020, in its November 4, 2009 research report.

 

"Tulip Telecom's 2QFY10 YoY sales growth of 27.7% YoY and EBIDTA growth of 56.5% YoY translated into only 3.2% YoY PAT growth on account of a jump in tax rates (1,280bps QoQ), as Section 80 IA exemptions start getting phased out. Driven by the strong operating performance (59% growth in data connectivity business and 131 bps  QoQ growth in consolidated EBIDTA margin), we upgrade our earnings estimates for FY10-12 by 19.5%, 4.4% and  10.7%, respectively. The stock is attractively valued at its current PE of 9.2x on FY10ii, with multiple upside catalysts, risk of tax rate hike built in, and offering 22% upside to our 12-month target price. Buy."    

 

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