Karvy Stock Broking Limited has maintained ‘Buy’ rating on Reliance Communications (RCom) stock with an intraday target of Rs 520.

According to Karvy, day traders can purchase the stock between Rs 495-497 with a strict stop loss of Rs 485. The stock pricing becomes more attractive, and reach above Rs 523, if the stock market remains positive.

Shares of the company, on Monday (July 28), closed at Rs 512.25 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 1396528. Current EPS and PE Ratio stood at 12.53 and 38.88 respectively. The share price has seen a 52-week high of Rs 844 and a low of Rs 381.05 on BSE.

The outlook for the stock is really very strong, and it will really outperform the stock market. The stock will achieve the target price as the company has aggressive growth plans and strong operating capabilities.

On July 28, Reliance Communications (RComm) was the most traded stock on Sensex.

Moreover, Anil Dhirubhai Ambani Group (ADAG)-promoted Reliance Communications (RCom) said that the exclusive talks for a `potential business combination` between the company and South African telecom company MTN Group have failed due to certain legal and regulatory issues.

A source said, “Owing to certain legal and regulatory issues, the parties are presently unable to conclude a transaction.”

Therefore it has been mutually decided to allow the Exclusivity Agreement to lapse.

Earlier Reliance Industries (RIL) had threatened legal action against both Reliance Communications (Q, N,C,F)* and MTN, a move that was initially rubbished by RCom. RIL had claimed its first right of refusal to purchase RCom shares in case of any sell-off by the ADAG group.

Reliance and MTN were planning to merge and create a company USD 66 billion company with operations in over two dozen countries.

RCom eyed 51% stake in MTN through cash and share swap deal.

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