Impact of price war yet to be seen on telecom cos' bottom-line: Bonanza Portfolio Ltd.

Avinash Gupta, AVP Research Equity, Bonanza Portfolio Ltd. in conversation with ET NOW spoke about the prevailing uncertatinty in telecom sectors due to price-war. It said the impact of price-war is yet to be seen on the bottom-line of some of the companies.

Are you avoiding telecom as we heard from some of the other analysts as a space altogether because when you look at telecom, Bharti appears to be a top pick, so do you start picking up the counter when you see a 6% cut sub-300?

We have been avoiding telecom sector since the time the price war started and that is nowhere near abating/updating.

The impact of this is yet to be seen on the bottom-line of some of the companies, so I mean there is more pain ahead and if you add companies like Zain, which will create pressure on their cash and the balance sheet, it will add to more negative, so it is better to avoid this sector and wait for some more period before you really see the bottom.