Reliance Comm has target of Rs 76- 78: SP Tulsian

Tulsian told CNBC-TV18, “Reliance Communication’s move was expected yesterday also but unfortunately we did not see that happening and today rightly so the stock has moved pass Rs 70 and I am seeing that as quite positive because we have now the dilution quantum also that the dilution is likely to get close to about 65-70% which can give them- if I take an average of about USD 850 million.”

He further added, “So any kind of move of fund mobilization will definitely be helping them though we may find more than USD 6 billion debts standing in the books of the company as quite steep but at least some process have got initiated by the company. There were two areas on which they were aggressively looking for- one is the tower monetization and second is Flag Tele IPO for the last 18 months and nothing has been happening concrete on that front. So it is a good move and the kind of under ownership post Veritas report where the scary target given of Rs 15. We have seen people remaining away even the traders were not very comfortable taking the long call into the stock. So combination of all this can make the stock move further from hereon, in fact I am taking a positive stance even at that time I had said that Rs 60 looks to be a good support and one can look for a price target of maybe about Rs 76-78 in this series itself.”