Karvy Stock Broking Limited has maintained ‘Buy’ rating on Reliance Communications (RCom) stock with an intraday target of Rs 595.

According to Karvy, day traders can purchase the stock between Rs 580-583 with a strict stop loss of Rs 575. If the stock market remains on positive track, the next target for the day will be above Rs 598.

Shares of the company, on Thursday (May 22), closed at Rs 584.65 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 1705772. The share price also touched a high of Rs 599 and Rs 570.10 during the day. The share price has seen a 52-week high of Rs 844 and a low of Rs 466.65 on BSE.

The stock will achieve the target price as the company has aggressive growth plans and strong operating capabilities.

Reliance Infratel, the telecom infrastructure division of Reliance Communications, is diluting 5% stake to a clutch of American and European investors in a pre-IPO placement a deal that values the company at about Rs 500 billion.

It is learnt that Reliance Infratel signed an agreement with a few American and European investors for the pre-IPO placement. The most recent transaction values the company at around Rs 500 billion whilst the previous 5% stake dilution, which Reliance Infratel had made, valued the company at around Rs 280 billion.

Reliance Communications (RCom), on May 12, has signed up a joint venture (JV) contract with telecom infrastructure company Alcatel-Lucent to offer up Managed Network Services (MNS) to telecom service providers in the country.

Under the agreement, the companies will frame up a new entity that will provide managed network services to both CDMA and GSM networks in 12 circles in northern and western India.

According to the sources, the joint venture will support RCom’s growth as well as progression outside India when the Indian market is saturated. RCom will spend $500 million over seven years for this service.

Moreover, the company has obtained a USD 750-million loan from China Development Bank in order to fund its nationwide GSM foray.

It is learnt that this is the single-largest loan extended to an Indian company by the China Development Bank. The company has already received all necessary approvals including that of RBI for the said amount, whose tenure is for 10 years and carries a coupon rate of Libor plus 80 basis points.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes Idea Cellular, Bharti Airtel, Tata Teleservice, MTNL and Tata Comm.