Telecom Stocks Outlook for the week – 08 to 12.08.2016
Range bound next week; Idea Apr-Jun results eyed
( www.rupeedesk.in )
Stocks of telecommunication companies are seen moving in a
range next week. Focus will be on Idea
Cellular Ltd, which will announce its Apr-Jun earnings on
Monday. The country's third largest operator by customer base is expected to report a consolidated net
profit of 4.49 bln rupees, down 22% on quarter. Consolidated net sales are seen rising 2.8% on
quarter to 97.33 bln rupees. Idea Cellular's quarterly number are seen under pressure due to a slowdown
in volume growth, fall in margins, and huge investment incurred in rolling out 4G services across
the country.
The stock is seen weak on charts. Movement will be guided by
its Apr-Jun numbers. Bharti Airtel Ltd, which corrected over the past week after delivering handsome
June quarter numbers, is expected to move in a narrow range. Earlier yesterday, the Sunil
Mittal-promoted company launched two new
post-paid plans that have data bundled with unlimited
calling. This comes in the wake of a pricing
war over data and voice as existing telecom players gear up
for the entry of Reliance Jio Infocomm,
the telecom arm of Reliance Industries Ltd. Telecom majors
including Idea Cellular and Vodafone
India Pvt Ltd have announced price cuts, or have launched
creatively bundled packs with higher data
and voice quantum.