RCom rings on global expansion buzz

Reliance Communications gained 3.28% to Rs 513.70 at 12:33 IST on BSE on reports the company is planning to set up WiMax networks across 50 countries in the next three years to move into the global telecommunication market.

On BSE, 10.40 lakh shares were traded in the counter. The scrip had an average daily volume of 19.49 lakh shares in the past one quarter.

The stock hit a high of Rs 520 and a low of Rs 508 so far during the day. The stock had a 52-week high of Rs 844 on 10 January 2008 and a 52-week low of Rs 376.60 on 19 March 2007.

The large-cap scrip had underperformed the market over the past one month till 18 March 2008, declining 18.82% compared to the Sensex's fall of 17.81%. It had also underperformed the market in the past one quarter, declining 30.04% compared to Sensex's decline of 22.31%.

The company's current equity is Rs 1032.01 crore. Face value per share is Rs 5.

The current price of Rs 513.70 discounts its Q3 December 2007 annualized EPS of Rs 8.46, by a PE multiple of 60.72.

To get a headstart, Reliance Communications (RCom) is planning to acquire a European WiMax operator in a $300-400 million (Rs 1,200-1,600 crore) deal.

Reliance Communications (RCom)'s net profit declined 43.4% to Rs 436.48 on 11.8% growth in net sales to Rs 3403.52 crore in Q3 December 2007 over Q4 December 2006.

RCom provides telecommunication services. The company provides wireless, wire line, voice, data and Internet communication services.