Telecom Woes

There scope of telecom revenue’s doubling up in 2-3 years time as younger people will be consuming much more day than now. This should enhanve valuations of telecom companies over time from present valuations. There is therefore an opportunity to buy in telecom companies Vodafone Idea (LTP 3.85) and Bhartiartl (LTP 360/-).

You will be listening on TV Channels voice of advisors advocating getting out of these stocks and this might well be with some motive to help out the short sellers.

These channels are at pains to suggest that companies are in the wrong by not paying dues and litigating. They also are saying that instead of financing operations through equity these companies sought loans from banks. My point is why would banks give loans in view of this liability unless there is scope with these companies to bear this liability when it comes. Vodafone Idea has even raised substantial capital last year. So go long as govt will not damage this sector any further and some concessions might have been thought of. In any case a well known eventuality shouldn’t result in melt down when it happens. This is manipulation and you must take advantage of same.

Krishna Khandelwal

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