Stock market analysts have maintained ‘buy’ rating on Reliance Communications (RCom) stock with an intraday target of Rs 221.

According to analysts, interested traders can purchase the stock above Rs 206 with a strict stop loss of Rs 198. If the stock market remains on positive track, the stock pricing becomes more attractive, and reach above Rs 228.

Shares of the company, on Monday (Dec 08), closed at Rs 207.05 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 4298896. Current EPS & P/E ratio stood at 37.03 and 9.94 respectively. The share price has seen a 52-week high of Rs 1465 and a low of Rs 282.15 on BSE.

The stock has great potential to rise on the back of healthy growth plans and well-built operating capabilities.

After the Reserve Bank of India (RBI) permitting premature buyback of foreign currency convertible bonds via rupee resources as well, Anil Ambani’s RCom is all set to become the first company to buy back such bonds.

In February 2007, RCom issued zero-coupon FCCBs to raise $1 billion. At present, the bonds are now trading at a 35% discount to the issue price. At this price, the company has to spend $650 million.

RBI has permitted FCCB buybacks via rupee resources provided the buyback amount is fixed to $50 million and the resources are taken out of the company’s internal accruals.

RCom’s wholly owned subsidiary, Big TV DTH has crossed the magical figure of 1 million subscribers in a short time period of just 90 days. Now, it has decided to drive large group pacts in residential clusters, hospitality businesses and business parks through the MDU installations.

The company is targeting a market share of 40 percent in the MDU sector during the first year of operations.

Launched in August 2009, BIG TV is available at more than 100,000 retail outlets across 6,500 towns together with over 2,000 exclusive Reliance branded stores.

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