Recommend a buy on MTNL: Ashish Maheshwari, Globe capital market Ltd

Ashish Maheshwari, Director, Globe capital market Ltd, in a chat with ET Now talks about MTNL.

What are your views on MTNL?

This is a slow mover stock. This is the stock in the telecom sector which has highly underperformed. In spite of the stock having a book value of Rs 150, you do not see in the current market so many stocks which are quoting even half of the book value in large cap space. So this is the one. The stock is gradually getting re-rated and this current development related to Reliance Industries is a win-win strategy for both of them because Reliance is now entering into telecom.

So they will get some experience while dealing with MTNL and MTNL is the company which is offering 3G for quite some time but they are very weak in the marketing. So now Reliance has joined the bandwagon. So after that certainly there will be some push in the 3G products. So I like to give a buy on this particular stock with the price target of 75 in a quarter.