Enter in Reliance Comm on correction: S Joshi

Sharmila Joshi,  of Prabhudas Liladher is of the view that one can enter in Reliance Communications on correction. 5-6% correction in the stock may be good entry point, he added.

Joshi told CNBC-TV18, "When it comes to a top pick for us in the telecom it would be Reliance Communications. But yes I think even where Bharti is concerned we do have an outperformer kind of rating on this stock, and if one can see the kind of number Bharti gave, I would say that they were really excellent numbers, where they had held on to their margins and one saw a significant increase in all the parameters whether one is talking of the kind of subscribers that they have added or the kind of Average Revenue Per User (ARPUs) etc."

She further added, "dBut yes I think when it comes to levels perhaps these levels do seem to be slightly higher than what one should look at for entering into Bharti but may be the investor will get an opportunity because there is this whole news about MTN playing out and even when this news first broke out the stock corrected quite a bit. Typically we do see that you have an acquisition of a company which is larger in size we have seen that in near-term worry but now the question remains how they are going to structure the deal etc."

"So perhaps I think if the investor has to enter a stock may be on correction the investor may look to enter Reliance Communications because we are more positive on that. But even Bharti if it were to correct from this levels by 5-6% that might give one a good entry point I of course like both the stocks. What you are going to see in future woould be very different form the kind of growth that you have seen in the past so it’s not going to be just based on the number of subscribers added or the geographies and the first round of growth has been covered by Bharti already, which is perhaps one of the reasons, why it is looking overseas to replicate a similar business model that it successfully implemented in India. But the way they have done in this quarter seems to prove that they are addressing a lot of the issue that they to face with going ahead. So it’s a stock I like but perhaps not entering at this price."