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OnMobile Global an outperformer: ICICIdirect.com
ICICIdirect.com has recommended an outperformer rating on OnMobile Global, with price target of Rs 545. The company enjoys the benefits of market leadership and marquee client relationships, which give it an unmatched opportunity to cross-sell its products and below-the-line marketing to newer clients.
ICICIdirect.com has recommended an outperformer rating on OnMobile Global , with price target of Rs 545, in its report dated September 22, 2008.
"We believe OnMobile, with its healthy revenue growth (48% CAGR over FY08-FY11E) riding on the back of explosive growth in mobile telecom industry in India coupled with rising VAS penetration, is an attractive investment option. The company enjoys the benefits of market leadership and marquee client relationships, which give it an unmatched opportunity to cross-sell its products and below-the-line marketing to newer clients. Since reasonable visibility in future cash flows is available we value the company on a DCF-based methodology. With 14% WACC, revenue CAGR of 19% over 2009E - 2019E and 4% terminal growth rate we value OnMobile at Rs 544.62/share. Our target price discounts the FY10E EPS of Rs 25.92 by 21x. We initiate BUY with an "Outperformer" rating", says ICICIdirect.com report.
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To read the full report click on the attachment......
