Prabhudas Lilladher has maintained it buy rating on Tulip Telecom with a target price of Rs 1317 in its June 27, 2008 research report. "We are quite upbeat about the company’s revenue for the next two years. However, we have lowered our margin expectations to 21.8% and 22.5% for FY09 and FY10 from 22.5% and 25% respectively."

"Further, we have raised the tax rate to 9% (from 6% earlier)for FY09 and FY10 as per the management guidance. This has resulted in a change of our profitability outlook for the next two years. However, we remain positive on the future growth prospects of Tulip and maintain BUY rating on the stock, with a PO of Rs 1317, which is 13x PER FY10," says Prabhudas Lilladher's research report.

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