Indian equity markets are trading at valuations which are in line with historic averages with earnings expected to grow faster than the last 5 years.
In an interview to CNBC-TV18, Bhavesh Gandhi, Research Analyst at IIFL shared his readings and outlook on Idea Cellular.
"Fiscal deficit of 3.9 percent was bit disappointing after fiscal prudence path that was spelt out last year. There are number of steps/projects announced to encourage investment in infrastructure/made in India," according to Sanjay Chawla, Chief Investment Officer at Baroda Pioneer Mutual Fund.
Sanjay Chawla, Director Research at JM Financial has a buy call on Bharti but finds idea more attractive. He says Bharti's progress rate is dragged down by its Africa operations and observes that the company's minute growth is lower than the industry average.
Sanjay Chawla of JM Financial prefers Bharti Airtel and Idea Cellular within the telecom space.
In an interview to CNBC-TV18, Sanjay Chawla of JM Financial spoke about the current environment in the telecom space and a few telcom stocks like Bharti Airtel, Idea Cellular
According to Sanjay Chawla of JM Financial for the longer-term there is preference for Idea Cellular over Bharti but in the short-term there is room for upgrade in Bharti numbers.
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Sanjay Chawla, senior telecom analyst at JM Financial is of the opinion that it might be a good bet to apply for the IPO. He believes, if an investor takes a six to twelve month time frame, Rs 210 to Rs 240 could be a fair value.
Sanjay Chawla of JM Financial explains to CNBC-TV18 that the price of the spectrum has to be discovered by the market and the government needs to cut the reserve price, increase the amount of the spectrum and conduct an auction again.
After the collapse of the CDMA auction, government hopes to make up for the loss by levying a one time charge on incumbent GSM operator‘s spectrum beyond 4.4 MHz.
Sanjay Chawla, Telecom Analyst of JM Financial sees a negative impact of Rs 10-11 per share on Bharti post the EGoM proposal. He also feels Idea's shares will see a downside of Rs 5-6 per share.
The cabinet on Friday had fixed a minimum base price of Rs 14,000 crore for the auction of telecom spectrum. While there has been mixed reactions from the street, Sanjay Chawla of JM Financial believes the litigation remains a real risk for the telecom sector.
With the new TRAI regulations creating uncertainties in the telecom sector, the results of Bharti Airtel have not met expectations, said Sanjay Chawla, Senior Telecom Analyst, JM Financial. Chawla picks Bharti as a preferred stock.
Telecom analyst Sanjay Chawla says the outcome of the ongoing 2G probe will be a positive for the telecom space. "The consolidation in the telecom industry will aid the existing players," he says.
Telecom analyst Sanjay Chawla of Antique Stock Broking said the investigations will remain as an overhang on telecom companies.