Friday, 21 November 2008

50% upside possible in Rel Comm: R Shah

Rajen Shah of Angel Broking feels that 50% upside is possible in Reliance Communications.

Shah told CNBC-TV18, "Reliance Communications has come down to very compelling levels at the current levels of Rs 180 to Rs 185. If you see what Docomo paid for 3 crore subscribers of Tata Tele that was about USD 10 billon. So in that context R Com which is having more than 5 crore subscribers could easily get value of about USD 15 billion to USD 16 billion where as today its quoting at a value of less than USD 10 billion, so there is a clear cut 50% upside possible in R Com. It has come down quoting 7 times of current years earnings viz the Sensex which is quoting 8.5 to 9 times, so one needs to keep patience for two years."

Source: Moneycontrol

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