Analysts' picks- Idea Cellular
Citigroup has maintained its ‘hold’ rating on Idea Cellular while cutting its price target to Rs 56 from Rs 70 in line with an earnings down-grade for financial years 2009-11 by 1-3%.
CMP: Rs 44.15
Target price: Rs 56
Citigroup has maintained its ���hold��� rating on Idea Cellular while cutting its price target to Rs 56 from Rs 70 in line with an earnings down-grade for financial years 2009-11 by 1-3%.
���Relatively weaker balance sheet compared to its larger peers reduces the funding flexibility in a tougher macro environment, thus constraining the valuation multiples,��� the investment bank said in a report.
���Estimated net debt of Rs 4,900 crore as of end-FY09 (Rs 3,200 crore as of September, ���08) is under control though net debt/EBITDA (earnings before interest taxation depreciation and amortisation) will be 2.3-2.4 times in FY10-11E. While this will moderate Idea���s bidding intensity, on the flip side, its balance sheet is most vulnerable to 3G bidding risk,��� Citi added.
Target price: Rs 56
Citigroup has maintained its ���hold��� rating on Idea Cellular while cutting its price target to Rs 56 from Rs 70 in line with an earnings down-grade for financial years 2009-11 by 1-3%.
���Relatively weaker balance sheet compared to its larger peers reduces the funding flexibility in a tougher macro environment, thus constraining the valuation multiples,��� the investment bank said in a report.
���Estimated net debt of Rs 4,900 crore as of end-FY09 (Rs 3,200 crore as of September, ���08) is under control though net debt/EBITDA (earnings before interest taxation depreciation and amortisation) will be 2.3-2.4 times in FY10-11E. While this will moderate Idea���s bidding intensity, on the flip side, its balance sheet is most vulnerable to 3G bidding risk,��� Citi added.
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