Buy Spice Comm

sunil_the_geminian · #1 12th September 2007, 02:30 PM

Spice Comm
CMP: Rs 55
Target price: Rs 70

Citigroup has initiated coverage on Spice Communications with a ‘buy’ recommendation as the telecom entity is in the process of ramping up coverage in Punjab and Karnataka. “Moreover, we believe its suitability as an M&A target provides the icing on the cake,” adds the report. Access to 900 MHz and its small footprint make it an attractive and probably the only M&A candidate, explains the foreign brokerage. “New spectrum rules may dilute M&A prospects a bit, but on the flip side provides a chance to enter new circles, though constrained by size and management bandwidth,” it adds.

However, the report adds that while new circle rollouts are possible if new spectrum norms are accepted by the department of telecom (DoT), Spice will remain constrained by its balance sheet size as well as management bandwidth. Citigroup has set a 12-month price target at Rs 70 per share. Incidentally, the price target includes a 15% M&A premium. We believe that the scope for merger/acquisition between Spice and other telcos such as Idea, RCOM and Aircel still exists, says Citigroup.

ron2007 · #2 12th September 2007, 03:14 PM

Hey,

You copied this from my hot picks thread

Link:http://www.traderji.com/equities/15164-hot-picks.html

RON.

sunil_the_geminian · #3 12th September 2007, 03:42 PM

sorry....

but i posted only about the share which i bought ....

i always tell people to buy only if i bought it.....

ajayr2003@yahoo.com · #4 2nd January 2008, 06:54 PM

SIR PLEASE TELL ME SPICE COMMUNATION AND SPICE MOBILE IS ONE COMPANY OR DEFFERENT SPICE MOBILE SHARE RATE 31 IN BSE AND CONTINOUSLY UPPER CIRCUIT

Quote:

Originally Posted by sunil_the_geminian

Spice Comm
CMP: Rs 55
Target price: Rs 70

Citigroup has initiated coverage on Spice Communications with a ‘buy’ recommendation as the telecom entity is in the process of ramping up coverage in Punjab and Karnataka. “Moreover, we believe its suitability as an M&A target provides the icing on the cake,” adds the report. Access to 900 MHz and its small footprint make it an attractive and probably the only M&A candidate, explains the foreign brokerage. “New spectrum rules may dilute M&A prospects a bit, but on the flip side provides a chance to enter new circles, though constrained by size and management bandwidth,” it adds.

However, the report adds that while new circle rollouts are possible if new spectrum norms are accepted by the department of telecom (DoT), Spice will remain constrained by its balance sheet size as well as management bandwidth. Citigroup has set a 12-month price target at Rs 70 per share. Incidentally, the price target includes a 15% M&A premium. We believe that the scope for merger/acquisition between Spice and other telcos such as Idea, RCOM and Aircel still exists, says Citigroup.

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