Thursday 25 September 2008

Accumulate Idea Cellular

Stock: Idea Cellular
CMP:Rs 79.50
Target: Rs 94
Recommended By: September 19, 2008 research report of Prabhudas Lilladher
Reason: " We initiate coverage on Idea cellular with an accumulate rating and a DCF based target price of Rs 94 (WACC=13%, Terminal growth rate=3%). Idea cellular is in the early stage of wireless coverage and at least 3-4 years away from attaining maturity. Further, new rollouts are currently gestation businesses (with around 10-12 quarters away from breaking even). Hence, we have used DCF as our prime tool to capture the true potential of the business,"

Posted by Harsh at 21:08

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