Please note -
1. If the price war continues further then the stock prices of telecom companies are expected to come down, more, so it is advisable to buy few quantities at current levels and keep averaging as the stock price falls down.
2. Due to posting of good financial results, there are high probabilities that the stock price may go up before mentioned duration periods so it is recommended to book profits as and when required instead of waiting for mentioned duration period.
Following are few telecom companies having good fundamentals and investors can plan buy these stocks in steps and do averaging as the stock price falls and hold for one to three years to get good returns.
1. Bharti Airtel
Current price - Rs.329
EPS - 23.91
PE - 13.75
2. Reliance Communication (Rcom)
Current price - Rs.172
EPS - 8.67
PE - 19.94
3. Idea Cellular
Current price - Rs.58
EPS - 3.78
PE - 15.40
4. Tata communication
Current price - Rs.336
EPS - 14.94
PE - 22.49
Dear Visitor,
The current price war (reducing of subscription charges due to tough competition) is happening in telecom companies.
Due to reduction in subscription charges the profits of the telecom companies are expected to come down due to which the share price of most of the telecom stocks have dropped drastically.
Taking these opportunity investors can buy stocks of telecom sector and hold for one to three years to get good returns but also there are high probabilities that the stock prices may go up in between due to good posting of financial results so in such scenario it is better to book profits instead of waiting for 3 years.
Telecom Sector
Posted date - 01 Jan 2010
Revised date - 19 July 2010
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