Sell Tata Tele; target of Rs 20: ICICIdirect.com

ALSO READ See previous views by ICICIdirect.com See what other Experts & Brokerages are saying about TataTeleservice See messages about TataTeleservice TataTeleservice BSE | NSE 10/02/12 Are Mutual Funds betting on TataTeleservice?

ICICIdirect.com is bearish on Tata Teleservices and has recommneded sell rating on the stock.

"The telecom industry is going through an unprecedented phase of hyper intensive competition which has negatively impacted the profitability. TTML, having presence only in two circles and limited access to 2G spectrum is assigned a discount of 40% to Airtel, which is trading at is 2.5x Market cap to FY12E sales. The stock is currently trading at 1.9x FY12 sales. Our target price implies a downside potential of 19%. We initiate coverage on TTML with a target price of Rs 20 and SELL rating."

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