Reliance Communications shares down 7 percent

By SiliconIndia   |   Friday, October 30, 2009
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Bangalore: The Reliance Communication (RCom) stock fell by over seven percent with the Sensex also ending the day in the negative territory. After starting the day at Rs. 193, the stock reached a high of Rs. 195.50, before closing trade at Rs. 175.95 down 7.37 percent. Through the day, 7,323,786 shares of RCom were traded in the market with the current P/E ratio of the stock at 15.29. The 52 week stock price is on the left. RCom is engaged in the business of providing telecommunications services. The company has a customer base of approximately 85 million, including 2.2 million individual overseas retail customers. Its corporate clientele includes 2,100 Indian and multinational corporations, and approximately 800 global, regional and domestic carriers. Recently it was reported that the financial statements of RCom, the subject of a special audit by the government, have been questioned further by Citi Investment Research and Analysis. The Citigroup unit, which reviewed the company's accounts for 2008-09 and the first quarter of the current fiscal year, said the divergence between revenue reported to the Telecom Regulatory Authority of India (TRAI) and to the stock exchanges has widened significantly. Out of the 33 analysts following the stock currently, the consensus recommendation is hold, with nine analysts suggesting to hold the stock and eight analysts recommending a buy rating. SBI Magnum Tax Gain Scheme holds the highest number of RCom shares with 2,804,056 shares in its portfolio.
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