Karvy negative on telecom sector

Karvy Stock Broking has maintained negative view on telecom sector in its research report.

 

The telecom sector regulator, the Telecommunications Regulatory  Authority of India (TRAI) has notified the key charges for the  implementation of mobile number portability (MNP). It should be noted that we have not as yet factored in the potential impact of MNP in our estimates.  As and when the implementation does take place, we expect our margin and EPS estimates to fall  further from current levels. Thus, in what is already a hyper-competitive sector, this is yet another  headwind that is likely to adversely impact telcos. We maintain our negative view on the sector. 

 

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To read the full report click on the attachment