Prefer Idea Cellular in the telecom space: Sonam Udasi

Sonam Udasi, Head of Research, IDBI Capital in an interview with ET Now talks about telecom stocks.

What is the call on telecom?

Looking at where we are currently, price competition is more or less given and done with. Regulatory framework is getting better. If I were to play telecom, there is a greater risk that I carry in Bharti’s case because I do not know how Africa is going to pan out and the fact that the biggest competition in town.

MTN has a huge capex plan for Africa, that could put pressure on Bharti’s cash flows. So to that extent if I am a telecom player, I would want to play Idea rather than Bharti simply because I know the numbers are continually coming in on the domestic market and I am not so sure how Africa will pan out for Bharti. So simply from that fundamental angle, I would prefer Idea.