Sell Reliance Comm; target of Rs 37: Maximus Securities

Maximus Securities is bearish on Reliance Communication and has recommended sell rating on the stock with a target of Rs 37 in its October 3, 2012 research report.

“Shares of RCom have raised by 29% in one month on account of three major events. 1) Slew of reforms introduced by the government to attract foreign investment 2) RCom hiked its pan-India tariff by 25%. 3) Stake sale in Reliance Infratel to reduce debt.”

“Quarter ending Sept 30, 2012. Revenues are expected to be in the range of Rs 4,313 crores and Rs 4,374 crores; YoY degrowth of 8 %. Earnings per share (EPS) is expected to be Rs 0.14; YoY degrowth of 36%. Fiscal year ending March 31, 2013. Revenues are expected to be in the range of Rs 18,467 crores and Rs 18,694 crores; YoY degrowth of 1.3%. Earnings per share (EPS) is expected to be Rs 0.57; YoY degrowth of 35%.”

“We see near term pressure on the stock price, we remain bearish and maintain a strong ‘SELL’ with a target price of Rs 37,” says Maximus Securities research report.

Public holding more than 90% in Indian cos

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