Religare puts 'buy' on Tulip Telecom; target Rs 1558
Religare Research has maintained 'buy' on Tulip Telecom and has increased the one year target price from Rs 1,392 to Rs 1,558, an upsided of 53 per cent from current level.
By ET Online |
MUMBAI: Religare Research has maintained 'buy' on Tulip Telecom and has increased the one year target price from Rs 1,392 to Rs 1,558, an upsided of 53 per cent from current level. The Jan-Mar 2007-08 results of the company were ahead of the brokerage expectations, fuelled by a stronger-than-anticipated performance in the IP/VPN business segment. The company added 23,366 connects in the segment against Religare���s estimate of 16,524 connects.
Also, while Religare expected a 26.7 per cent year on year decline in ARPUs, the fall was limited to 18.9 per cent. The brokerage believes the downslide in ARPUs will continue in 2008-09 and 2009-10 as the company increases its presence in rural areas.
Considering the out-performance during the quarter and a stronger outlook for connect additions, the brokerage has raised their revenue and EPS estimates for 2008-09 and 2009-10.
Also, while Religare expected a 26.7 per cent year on year decline in ARPUs, the fall was limited to 18.9 per cent. The brokerage believes the downslide in ARPUs will continue in 2008-09 and 2009-10 as the company increases its presence in rural areas.
Considering the out-performance during the quarter and a stronger outlook for connect additions, the brokerage has raised their revenue and EPS estimates for 2008-09 and 2009-10.
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