Bullish on RComm: Gurunath Mudlapur, Atherstone Cap

ET Now spoke to Gurunath Mudlapur, Director, Atherstone Capital Markets Ltd., on his views on RComm.

Are you impressed with RComm or does it need to do something more to impress you?

It is simple that the company needs to produce more profits at the bottom level, that's the first thing they should be looking at and try to do the normal way of trying to service that.

In the meantime if they are able to get in private equity investors, it should be good but my own assessment is that it will not be easy to get in private equity investors from the perspective of repaying debt, so as a telecom space, the competition is already heating up and lots of competitiveness, which has to be build into the prices from a customer perspective is already done.

So from that perspective, they are already one of the larger players in the sector, they stand to gain on the benefits, which the sector is going to get and from that perspective, the stock has already fallen down, the price is already factoring the negatives, which has happened in the recent past.

So there is an upside, which is still possible in this stock from the current levels because of the low expectations in the markets. Overall being on a bullish tone, I think that there could be a bounce back in the company's stock in the shorter term.