Indiabulls maintains its 'sell' rating on MTNL
Indiabulls has maintained its ‘sell’ rating on MTNL, with a price target of Rs 65.
By ET Bureau |
MTNL
CMP: Rs 71.15
Target price: RS 65
Indiabulls has maintained its ���sell��� rating on MTNL, with a price target of Rs 65 citing declining revenues from the landline segment, a rigid cost structure and low-return ratios.
���Despite continued efforts to revive its revenues through its broadband service offerings, the company has failed to witness any turnaround in its fixed-line telephony. Furthermore, the entry of Idea in Mumbai has hit the company���s market share the most,��� the outfit said in a report.
���With Delhi and Mumbai being comparatively saturated markets, we expect existing players to retain and add more customers to their network through attractive tariffs and value-added services. However, with such a rigid cost structure, MTNL may not be able to compete with its private counterparts,��� it added.
CMP: Rs 71.15
Target price: RS 65
Indiabulls has maintained its ���sell��� rating on MTNL, with a price target of Rs 65 citing declining revenues from the landline segment, a rigid cost structure and low-return ratios.
���Despite continued efforts to revive its revenues through its broadband service offerings, the company has failed to witness any turnaround in its fixed-line telephony. Furthermore, the entry of Idea in Mumbai has hit the company���s market share the most,��� the outfit said in a report.
���With Delhi and Mumbai being comparatively saturated markets, we expect existing players to retain and add more customers to their network through attractive tariffs and value-added services. However, with such a rigid cost structure, MTNL may not be able to compete with its private counterparts,��� it added.
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