Bharti and Idea look interesting in telecom space: Deven Choksey

In a chat with ET Now, Deven Choksey, MD, KR Choksey Securities, shares his investment ideas.

Vodafone has picked up a 33% stake of the joint venture Vodafone Essar, which is Essar stake in the same. Does that call for a possible relook at the entire telecom space?

The entire telecom space looks quite interesting to me. Last week we saw the AT&T and T-Mobile deal. Again when we saw the ARPU over there compared to Indian ARPUs, it is 4 to 5 times higher.

Vodafone is buying the Essar stake and probably with an intention that they want to own this company or list this company at some point of time and have a larger freedom to expand their operations. Even Tata Docomo is planning to invest more money into the Indian telecom space. Even Bharti's ARPUs and MOUs are on the rising side.

So, all these things put together suggest that the teleco space is now definitely coming to some kind of a limelight minus the 2G scam-related activities going around. But if the mergers and acquisitions norms are spelled out in the new telecom policies, then possibly most of these telecom companies would get rerated. It may be slightly premature to say that about many of the companies, but I would say let’s stay with the larger ones where the views are clear like Bharti and Idea. There could be good opportunities in Tata Docomo IPO or Tata Teleservices IPO which could come in couple of months.