Rcom is so calm

If you observed the Thursday's trading pattern of Reliance Communications one can get doubt about the manipulation of this counter. Reliance Communications provides telecommunicatins like Voice, data wire and wireless telecom services. Rcom posted Rs.347.38 cr netprofit for the quarter ended June'08 the netprofit fell down by 58.50% but net sales increased to Rs.3757.97 cr by 10.20%. Reliance Communications is having equity capital of Rs.1032.01 cr with Rs.5 face of value of equity shares.

Rcom share price is slowly falling in recent times. The stock price hit a low of Rs.263.80 during the Wednesdays trading session. Religare has came with decent estimates on Wednesday. It estimates that Profit After Tax will come down for Sept'08 to Rs.1266.9 cr fall by 2.9% . But it said that sales will rise by 29.90% to Rs.5730.3 cr. The main reason of the recent fall in share price is that many of brokerage houses are predicting the down fall in net profit margins of Rcom for the 2nd quarter,which was resulted to offload the stock in recent times. But it foray into GSM sector will be much beneficial in the coming days.

Overall the points considered about the Rcom, we can say that it is the stock for longterm. But one can say some momentum from Rs.300 level.