Once competitive pressure eases, get into telecom stocks for long term: Paras Adenwala

Paras Adenwala, MD & Principal Portfolio Manager, Capital Portfolio Advisors in a chat with ET Now talks about telecom stocks.

Do you really sense that perhaps on a long-term basis while right now fair enough the telecom balance sheets are looking overstretched but with 3G because that has higher efficiency than the current 2G? Your BWA can be used for WiMAX as well and be used for 4G. On a long-term basis, do you see a whole lot of value accretion?

Yes, absolutely. Now the telecom companies would have to really focus on the value-added services as opposed to pure volume gain that they have been used to in the past and, therefore, there is tremendous amount of innovation that these people can do and keep on improving the margins, so once this competitive pressure eases out, it has already begun to ease out.

Once it settles down and the balance sheet also starts improving, that would be a time to really get back into some of the leading names and stay invested for the long term.