This is the last leg of immediate rally in Bharti: Ajay Srivastava

In a chat with ET Now, Ajay Srivastava, Dimensions Consulting Pvt Ltd, talks about telecom stocks.

ET Now: Do you think the storm has indeed come and gone for the entire telecom sector because one is getting a sense that pricing power is now coming back with some of these telecom companies and since they have such a large base now, a 20% incremental jump could change their profitability going forward?

Ajay Srivastava: Of course you are right. It is more than the 20%. It is a trigger telling us that the prices are moving northwards. We are also looking at a situation where we are back to a near monopoly situation for these four players in the country. All the new entrants are by and large kind of struggling to survive but we have got to be careful. It is a trigger point but like Bharti, the stock has already gone up quite substantially. If you remember in one year, Rs 260 to be already touching 420, so now we are chasing the last leg of the immediate rally in Bharti, so we have got to be careful when we are buying. The trigger is a greatly positive of course but in terms of valuation, we have got to be careful. It has already gone up quite substantially, so if they are chasing the valuation now, it is at a risk today.