Subscribe to PRO at just Rs.33 per month. Use code SUPERPRO
Last Updated : Jan 29, 2016 11:00 AM IST | Source: Moneycontrol.com

Sell Reliance Comm; target of Rs 40:Motilal Oswal

Motilal Oswal is bearish on Reliance Comm and has recommended buy rating on the stock with a target price of Rs 40 in its research report dated January 27, 2016.

  • bselive
  • nselive
Todays L/H

Motilal Oswal's research report on Reliance Comm

3Q revenue/EBITDA below estimates: RCOM’s 3QFY16 revenue declined 1.1% QoQ to INR53b (3% below estimate), led by lower India as well as global revenues. EBITDA grew ~1% QoQ to INR18b (our estimate: INR18.7b). India EBITDA grew ~1% QoQ to INR16.2b (4% below estimate). Global segment EBITDA grew ~4% QoQ to INR1.83b (our estimate: INR1.82b).

The stock trades at EV/EBITDA of 8x FY16E and 7.5x FY17E. We are cutting our EBITDA estimates by 1-5%. Maintain Sell with a target price of INR40 based on FY18 EV/EBITDA of 6x for core business (ex Reliance JIO contract) and INR40b for upside from signed contracts with Reliance JIO (~5x steady-state EBITDA).

For all recommendations, click here

The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Jan 29, 2016 11:00 am