CMP: Rs262 Target Price: Rs250
RCOM has signed Etisalat DB as first external tenant for its tower business in a 10 year contract at healthy capex recovery of 13-14%. The deal involves provisioning of passive and transmission infrastructure at 30,000 sites in 15 circles and is expected to generate revenues of Rs10-12bn from FY12E on steady state basis. We believe that this deal would regain the value of tower business which wasn't considered in absence of any external tenant. We value the accretion from this deal at Rs25/ share and hence increase our target price on the stock from Rs225 to Rs250 per share. Retain HOLD rating.
--~--~---------~--~----~------------~-------~--~----~
Safe Harbor:
The information contained and provided on this Website provides Investment advice for the education of investors. The posts are an information service only. Recommendations, opinions or suggestions are given with the understanding that readers acting on this information assume all risks involved. We do not assume any responsibility or liability resulting from the use of such information, judgment and opinions for Trading or Investment purposes.
You received this message because you are subscribed to the Google Groups "Investors Please Listen !" group.
To post to this group, send email to investorspleaselisten@googlegroups.com
To unsubscribe from this group, send email to
investorspleaselisten+unsubscribe@googlegroups.com For more options, visit this group at http://groups.google.com/group/investorspleaselisten?hl=en
-~----------~----~----~----~------~----~------~--~---
No comments:
Post a Comment