Prefer Idea Cellular: Prakash Diwan

Prakash Diwan of Altamount Capital Management told CNBC-TV18, "We would add to Idea Cellular very clearly. It has been one of the decent performers in the telecom space. The fact that pricing power seems to be imminently coming back and particularly with the product mix the ARPU's have started turning out to be very healthy for Idea in the last quarters. So, it is not something which is a blip, it is probably a changing trend and the premiums that you pay for such a business if you compare the valuations to what you were paying two years back when the business was in a nascent stage, specially the internet usage, data usage on the retail side, you were paying a huge premium. Today the business has grown, the contributions have been so healthy but you are still paying the same kind of PE multiple."

"Idea does have that potential to re-rate. Bharti Airtel has some headwinds with its debt still being slightly high. They have some baggage on their African business which Idea doesn’t have, it is a clean pure play which we like," he said.