RELIANCE COMMUNICATION VENTURE

 
Target Price - Rs.400 +

RCVL is a holding company for the telecom businesses of the Reliance Anil Dhirubhai Ambani Group which has successfully demonstrated the largest CDMA deployment in the world. The company’s EBIDTA margins have shown a substantial improvement over the last four quarters as the economies of scale are improving. The company has a huge technological edge which will slowly get translated into tangible financials. On the technical front, in the adjacent chart one can notice that the stock has broken out of a rectangle and is headed for higher levels. It has closed above its previous high of Rs.339 which was made in the first week after listing. The demand for this stock in the FII circles is increasing and the chart structure indicates that the stock is headed for higher levels.