Tata Tele can move up to Rs 40-43: Shah

Rajan Shah from Angel Broking is of the view that Tata Teleservices could move up to Rs 40-43 levels on account of the hiving off of the tower business but fundamentals are nothing great to talk about in this company in the short term.

Shah told CNBC-TV18, "The company has been improving its performance year on year but nevertheless the company still continues to report the loss, the loss about 2 years back was huge and this year they would report about Rs 100 crore to Rs 110 crore net loss for FY08. In the current year, we could see the company maybe turning around so there is nothing much to talk about in this company and the best case scenario; it will report about Rs 0.5 kind of earnings. So, on the fundamental bases if you look at that way the stock looks to be fairly priced. The only hope for the company is the merger with Tata Tele Services which is the parent company and the other thing is that the stock could move up to Rs 40 to Rs 43 levels on account of the hiving off of the tower business but fundamentals are nothing great to talk about in this company in the short term."

Disclosure: I have an indirect interest in all the stocks discussed today.