Reliance Comm can move to Rs 70- 72: SP Tulsian

Tulsian told CNBC-TV18, “Reliance Communication, I don’t think that there is any substance or logic in the Veritas report because today morning I heard the company’s spokesman saying that the company is likely to realise not more than Rs 3 million per tower and if you take 50,000-52,000 tower at the command of the company it can fetch them about maybe Rs 15,000-16,000 crore and these are just a ballpark figure, which can always swing 5% here or there and the estimation made by them is to the extent of Rs 12.5 thousand crore and apart from that so many concerns, no point in taking points one by one.”

He further added, “Taking all this into consideration I don’t think that- yesterday also I gave my view that I don’t see the stock falling below Rs 60 because even if you take the enterprise value, now it is ruling at less than Rs 50,000 crore, even with this share price of- with a market cap of close to Rs 12,000-13,000 crore, Rs 35,000-36,000 crore of debt and the company definitely has that kind of enterprise value and the tangible assets had their command. So maybe the effect of this report will go away in the next couple of days, which we have seen in case of DLF also and then maybe the stock again will start behaving normal with the caveat that it is not likely to breach below Rs 60, but yes, the upside can remain in line with the other telecom stocks and it can move to Rs 70-72 in the next one week or so.”