Reliance Communications Ltd. (RLCM.BO)
Research Tactical Idea
We believe the share price will rise relative to the country index over the next 60 days.
This is because the stock has traded off recently, making short term valuation much more compelling. While we have no
clarity on the ongoing investigations by the CBI, we believe that at the current levels, the stock is attractively valued at 0.3x
price to book. Further, the potential tower separation could be a postive trigger for the stock.
We estimate that there is about an 80%+ or "highly likely" probability for the scenario.
Estimated probabilities are illustrative and assigned subjectively based on our assessment of the likelihood of the
scenario.
Stock Rating: Overweight
Industry View: Attractive
Research Tactical Idea
We believe the share price will rise relative to the country index over the next 60 days.
This is because the stock has traded off recently, making short term valuation much more compelling. While we have no
clarity on the ongoing investigations by the CBI, we believe that at the current levels, the stock is attractively valued at 0.3x
price to book. Further, the potential tower separation could be a postive trigger for the stock.
We estimate that there is about an 80%+ or "highly likely" probability for the scenario.
Estimated probabilities are illustrative and assigned subjectively based on our assessment of the likelihood of the
scenario.
Stock Rating: Overweight
Industry View: Attractive
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