IDEA should trade at far higher multiples

Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS IDEA Cellular debuts with 13.33% premium See FY08 net profit at Rs 44 cr: Mudra Lifestyle Expect 50% increase in revenues next yr: Euro Ceramics Expect to grow at CAGR of 42%: Vijayeswari Textiles Mudra Lifestyle opens below issue price Idea Cellular BSE | NSE 10/02/12 Are Mutual Funds betting on Idea Cellular?

Sanju Verma, Head-Institutional Broking of HDFC Securities is of the view that given the excellent fundamentals, IDEA should trade at far higher multiples because there is very little to choose from in the telecom space.

Verma told CNBC-TV18, "I am slightly disappointed with the listing of IDEA Cellular -perhaps it has to do with the fact that the sentiment is slightly skittish. But given the excellent fundamentals, it should trade at far higher multiples because there is very little to choose from the telecom space.

Bharti  and  Reliance Communication  to some extent have run their course in terms of an appreciation and people were eagerly awaiting this one (IDEA). So I think that once it get brokered properly people will realize that it trades at a steep discount to Bharti and will start accumulating it. So I am not particularly disappointed but I had anticipated it to open far stronger."