Tuesday, 15 September 2009

Buy Reliance Comm, target of Rs 391: Motilal Oswal

Motilal Oswal has maintained its buy rating on Reliance Communication with a price target of Rs 391 in its report dated September 11, 2009.

"We maintain our price target of Rs 391/sh based on core DCF valuation (ex-incremental tower upside) of Rs 342/sh (12.6% WACC, 4% terminal growth, implied FY11 EV/EBITDA of 6.8x), and Rs 47/sh for the incremental upside from the passive infrastructure business (Rs 2 million/tower). Our DCF valuation for Reliance Infratel (RI) is USD 9 billion or Rs 200/sh of Reliance Communication, of which 40-50% would accrue from external tenancy, Buy," says Motilal Oswal's report.

Source: Moneycontrol

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