Buy Reliance Comm, target of Rs 227: Angel

Angel Broking has maintained its buy rating on Reliance Communications with a target of Rs 227 in its January 23, 2009 research report. "Reliance Communications (RCOM) recorded a disappointing 18.8% yoy growth in Top-line in 3QFY2009. Owing to lower Margins, higher Depreciation and Taxes paid, RCOM�s Bottom-line grew by just 2.7% yoy. In fact, Profit before Tax fell nearly 5% yoy. On a qoq basis, Bottom-line fell 7.9%. Even as we maintain a Buy on the stock, with a revised Target Price of Rs 227 (Rs 451), including Rs 194 as the core business value (8x P/E multiple) and Rs 33 as the Towerco value, we expect stock price performance to remain muted in the short-term," says Angel Broking's research report.

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