RCoVL m-cap rises to Rs 37506 cr

Reliance Communication Ventures Ltd (RCoVL) gained further ground on Tuesday closing over 5 per cent higher, taking its market-capitalisation to Rs 37,506 crore.

The stock opened on the BSE at Rs 293.4 and on the NSE at Rs 307.20. It fluctuated between a high of Rs 317.5 and a low of Rs 292 before closing on the BSE at Rs 306.65. On the NSE, the stock closed at Rs 307.20.

Volumes on the BSE was 1.1 crore, while more than 1.9 crore changed hands on the NSE. RCVL is the holding company for Reliance Infocomm, Reliance Telecom and Reliance Communication Infrastructure.

"The company has just turned profitable. The growth potential in the stock is quiet high and in the short term it is expected to trade at Rs 350. There is a heavy demand for the stock currently," said Pankaj Karde, dealer "" institutional equity"" India Infoline.

"The company is expected to clock earnings per share of Rs 13 for FY07. And over time the valuation gap between RCVL and Bharti should bridge," said P Phani Sekhar of Angel broking.

Currently, Bharti boasts of a market-cap of over Rs 76,000 crore. Based on the current price of RCVL, the valuation of Reliance Infocomm at around Rs 50,000 crore, leaving substantial room for a rise.

"The valuation gap is owing to 4- 5 per cent lower operating margins for RCVL compared with Bharti. The customer churn is also high for RCVL," he added.