Prefer Idea Cellular on declines, says Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "In lack of financial information very difficult to make an understanding of what will happen but clearly Reliance communications has been underperforming both in terms of their core business performance and again in terms of their business outlook it looks a little bit patchy because of the kind of the leverage balance sheet that they possess. Bharti Airtel’s balance sheet is also equally stretched. Its African operations are looking a bit dodgy when it comes to the Nigerian part. So, I will wait and watch for telecom guys and with 0.39 of the spectrum payouts happening, a lot of their cash flows and return ratios are going to get affected."

He further added, "The capex plans are very much on track, for Idea the capex plans are close to Rs 5,000-6,000 odd crore which is going to substantially eat into their free cash flows for this fiscal. So, again corrections are something that I will wait for but then Idea is something that I like but you have to wait for significant corrections. Clearly we will have to work out our numbers on that, I will have to sit with my telecom analyst who really work out the numbers but at this point of time Idea Cellular on declines looks like a much preferred bet within telecom space."