Idea Cellular is part of the “Premium Global Conglomerate ” Aditya Birla Group and is the third largest wireless operator in India. The company management is aggressively rolling out 4G, to cover the length and breadth in telecom circles across India.
Fundamentally, company stock is trading at 1.5 times the Book Value (BV) and at PE of 12.5. Return on Invested capital is about 20% and sales growth is around 16%. Price to earning Growth (PEG) value of 0.57 makes it more attractive with respect to valuations.
Technicals of Idea Cellular
The stock price has created Double Bottom Pattern in Daily and Weekly Chart. The stock witnessed heavy buying at the psychological level of 100 and was able to close in green during the bearish market. The swift upside move towards Rs. 125-148 level can be expected for short term trading with risk level placed @91.5.
If you are convinced about mobile network penetration and growth of internet usage in India you can start accumulating the stock.
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Registration Status: I am not a SEBI registered Research Analyst.
As per SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014 and clarifications provided by SEBI
“Any person who makes the recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations.”
Disclaimer: I do not hold any position in IDEA Cellular.