Rcom Buy Rating

KRChoksey Research has maintained its buy rating on Reliance Communications with a revised target price of Rs 508 in its July 30, 2008 research report. "Revenue was Rs 5178 crore lower than our expectations. Net sales declined 1% q-o-q in spite of an 11% increase in the subscriber base. This was mainly due to a drastic decline in ARPU by 11% q-o-q to Rs 282, due to additional reduction in tariffs."