Angel Broking has maintained its buy rating on Reliance Communications with a 12-month target price of Rs 763 in its May 2, 2008 research report. "Reliance Communications (RCOM) recorded a strong 35.5% yoy and an impressive 9.9% qoq Top-line growth in 4QFY2008. This was driven yet again by the company’s Wireless Business unit, which recorded an impressive 40% yoy and 5% qoq growth in Gross Revenues. RCOM recorded a strong 184bp yoy expansion in EBITDA Margins on account of operating leverage, and lower Access Charges and Licence Fees as a percentage of Revenues. Sequentially also, there was a 90bp rise in Margins, due again to lower Access Charges and Licence Fees."
"At the CMP, the stock is trading at 14.2x FY2010E EPS, FY2010E EV/EBITDA of 10.2x and an EV/subscriber of USD 381.6 on our FY2010E mobile subscriber base. We expect RCOM to continue to record strong growth. A host of value-unlocking initiatives such as the potential listing of the towerco, Reliance Infratel and the global business, Reliance Globalcom, as also the full-fledged GSM roll-out, apart from newer initiatives like DTH and IPTV are likely to sustain stock price movements going forward. We maintain a Buy on the stock, with a 12-month Target Price of Rs 763, including Rs 91 per share as the value of the towerco, Reliance Infratel," says Angel's research report.
Karvy Stock Broking has maintained its buy rating on Dena Bank with a revised price target of Rs 90 in its May 6, 2008 research report. "Dena Bank reported strong 4QFY2008 with net profit yoy growth of 153% to Rs 1.1 billion which was 85% higher than our estimate of Rs 602 million. The main feature of the results was significantly higher provisions as the bank concentrated on cleaning up its balance sheet and a substantial tax write-back on account of bad debt write-offs."
"We are increasing FY2009 EPS by 10% to Rs 15 and FY2010 EPS by 9% to Rs 18.8 to factor lower bad debt provisions. We are upgrading our price target by 6% to Rs 90 at 1.6x FY2009 ABV," says Karvy's research report."
