Increasing competition and muted growth has made telecommunication a matured play and with the rural market being a low margin segment the rural growth story will not command higher valuations and with new services like 3G and Wimax being delayed due to regulatory hurdles the present outlook for the industry doesn’t looks favorable and with Mobile Number Portability (MNP) due to come there would be a churn in subscriber base making it all the more difficult for the existing players
Posts Tagged ‘second quarter results’
At the current market price of Rs 522 the stock is currently trading at a trailing twelve month P/E of around 12, despite its earnings growing at an average of around 60%, over the last four quarters and good dividend payment track record and a dividend yield of over 4%
Hence, we maintain our BUY call on the stock with a year DDM based price target of Rs 625.
Reliance Industries Ltd. declared its second quarter results today. The results came in line with the Bloomberg consensus expectations. Reliance’s standalone net profit fell by around 6% YoY, to Rs. 3,852 cr. from Rs. 4,116 cr. This was mainly on account of a lower gross refinery margins (GRMs)