harmads said:
Thanks a ton Karthik for your opinion on M&M and TISCO.
I would appreciate if you could give your judgement on following scrips and wether they are undervalued and would appreciate in next one year :
1. TATA TELESERVICES
2. AVAYA GLOBLE
3. VSNL
4. TATA CHEMICALS
Best regards
Dear harmads
Here is the second Installment of my reply....
My view on TATA Teleservices is follows
My view: AVOID
Not encouraging. Just the main points ….
The company which is listed on the BSE is Tata Teleservice (Maharastra) limited which was previous known as Huges Telecom. Tata bought this company and the name was changed. The Tata teleservice which has a national presence is a private unlisted company. All the expansion, NLD license we are hearing is about the Tata Teleservices.
Recently there was some rumors that TTSL(maharastra) is to be merged into the TTSL main company which the company has refuted.
In the quarter ending April 05 (That is last one available in their web site !!) the revenue was 239 Cr, a 23% growth compared to the same period the previous year. Also the losses were 129 Cr. Compared o 93 Cr. in the corresponding quarter the previous year. The service covers 135 towns as of today and the company plans to extend it to 160 towns by March 2006.
The scope for expansion for the main Tata teleservices (private one) is very good but for the listed company which holds license for Maharastra and Goa only the scope of great expansion is limited. Also the current debt is huge, about 1700 Cr.
The company has announced the plans to issue rights.
Hope this helps.
regards
Karthik