Monday, 21 September 2009

Buy Reliance Infra, target of Rs 1438: Prabhudas Lilladher

Prabhudas Lilladher has recommended a buy rating on Reliance Infrastructure with a target price of Rs 1438 in its September 17, 2009 research report.

"Near-term triggers, relating to outcome of the ongoing RIL-RNRL gas dispute, timely financial closures and EPC awards, are events to watch out for the re-rating of the stock. However, timely project completion and commercialisation remains the key risk. We value RInfra on a SOTP basis as different businesses have different modes of revenue recognisation and a common measure would not capture the embedded value and hence, we arrive at a target price of Rs 1,438. We, thereby, initiate the coverage on the stock with a 'BUY' rating," says Prabhudas Lilladher's research report.

Source: Moneycontrol

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