Should I buy Tata Telecom at Rs 150 for the medium term?
For the nine months to December, Tata Telecom had revenues of Rs 171 crore, an increase of 18.5 per cent over the previous corresponding period. Net profit rose 335.6 per cent toRs 7.8 crore. It is expected to close the year with an EPS (earnings per share) of Rs 10. This means its current stock price of Rs 180 discounts these earnings 19 times. Given the continuing growth in the company’s businesses and its firm fundamentals, more gains can be expected.
