>Onmobile (Citi)

New Rs337 target price — We are reducing FY09-11E EPS by 5-16% with 1)
delays in new product deployments particularly outside India; and 2) higher
cost pressures as OnMobile continues to invest heavily on projects/new product
development, whose revenue streams have yet to start flowing. Our target price
is based on 16x Mar-10 P/E (25x earlier), and is in-line with multiples of
comparable peers. Target P/E while appearing high in this environment, is
justified given its strong growth prospects (37% EPS CAGR over FY08-11E).

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