Ajay Srivastava, CEO at Dimensions Consulting is of the view that one may prefer telecom stocks with long term view.
Ajay Srivastava, CEO at Dimensions Consulting told CNBC-TV18, "Idea Cellular will see expansion in valuation parameters. The reason being assured revenues, assured costs, healthy rate of return and lack of new players. There is no new player coming into the market. Reliance Jio you can say yes, but I do not take them very seriously at this point of time and in my discussion with them, neither of any telecom company take them very seriously at this point of time."
"You cannot buy spectrum tomorrow from somebody so you cannot start the new venture, what else do you want in the matrix of a company? It is a phenomenal matrix for the industry which is being built up, I would put my bet on this price which is going to be two times in the next 2-3 years. That is the kind of return we are looking at. Do not worry, the next big one is coming and if you are looking at doubling your money in 2-3 years, these are the places to be," he added.
At 12:15 hrs Idea Cellular was quoting at Rs 170.90, down Rs 9.50, or 5.27 percent. It has touched a 52-week high of Rs 186.90.