Add Idea Cellular - Target Price Rs.90 - Kotak

2QFY13 results a mixed bag; SAC control offsets volume miss. Control on subscriber acquisition and other S&M expenses aided a solid beat in standalone wireless EBITDA, despite a modest topline miss. Two surprises (a positive and a negative) sum up the quarter—(1) positive—reduction in S&M. A good part of the SAC control was driven by increased industry discipline; this can sustain, and (2) negative weaker-than-expected volumes; difficult to say if there was more than seasonality at play here.

We cut our FY2013/14E EBITDA estimates by around 2%. ADD. TP stays at Rs90/share.

Source : Equity Bulls

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