Reliance Communications can touch Rs 85: Eastern Financiers

Rajesh Agarwal, Head of Research at Eastern Financiers Limited advised holding Reliance Communications. According to him, a target of Rs 85 can be taken for a time horizon of 6-9 months.

Agarwal told CNBC-TV18, "Reliance Communications can achieve a target of Rs 85 in the next two-three quarters considering the fact that again the tariff hikes are taking place, there has been a shakeout in the telecom industry."
"The company has dented its bottomline just because of higher interest cost but the management is very keen on reducing debt by some stake sale or tower asset sale. And if these things take place, that would be a positive trigger for the stock. But, at this point of time, a reasonable target of Rs 85 can be taken for a time horizon of 6-9 months and one can stick to this stock. Even new buyers can enter at around Rs 70," Agarwal added.