Prabhudas Lilladher - Reliance Communications

Going forward, we expect a 33% CAGR in revenue, following a 45% rise in the number of subscribers, and 34% and 40% CAGRs in EBITDA and PAT, respectively. At the CMP of Rs 420, the stock trades at a P/E of 21x FY08E earnings and at an EV/EBIDTA of 12.4x, based on the fully diluted equity.


"The stock appears more attractive on a sum-of-parts valuation as 13-15% of the present valuation is embedded in the Tower and Global parts of the business (listing of FLAG Telecom)."

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