See Rs165/sh as attractive entry point for Idea: IIFL

Whereas for Idea, the previous fiscal was a very robust year and we expect the same to continue at least at the operational level for the company though for Idea the main risk is the high renewal payouts that the company faces as nine of its licenses expire over the next two years.

Latha: I was more interested in getting your view on Idea Cellualar. This big stake sale by Providence has given perhaps a providential opportunity to get in, you are getting it at Rs 167, maybe even Rs 165. Is that a good buy level or will you even see Rs 150 which we actually saw – we all tend to forget about two-three weeks back?

A: Rs 165 would be good time to enter the stocks in terms of valuations for Idea Cellular. On a fundamental basis it looks good till Rs 200 based on our calculation. One can enter the stock at this point of time.

Latha: What about Bharti Infratel?

A: Bharti Infratel would be more of a steady state kind of a story unless something on the mergers and acquisitions (M&A) front happens. Otherwise we do remain positive on the stock at this point of time.

Ekta: What is the market factoring in with regards to Reliance Jio launch date and do you think that the possible competition dynamics are already partially or maybe completely factored into stock prices?

A: One needs to look what sort of competition on the horizon Reliance Jio would bring. I think mainly the fight would be for the data subscriber so to say. Having said that the volume growth for data should stay strong even if there is an additional increase in competition but pricing as we have seen anyway in the past one or two quarters or so, data pricing has sort of come under some sort of restrain. However, volumes should more than pick up for any potential drop in pricing.