There scam brokeout at telecome ministry.
BSNL/MTNL not given permission to rollout GSM services till 2000. Where pvt sectors were given all sort of license to tap the telecome market.
All these fraud happened under NDA govt. Pramod mahajan involve in that.
Not advisable to sel this Navaratna at this level. It posted profit Rs20rore. EPS 0.33.
Apart from this it has huge cash reserve. Cash per share is more than stock price. It also has huge assets in mumbai and delhi however value unlocking will not be easy due to corruption at higher levels.
BSNL/MTNL has huge land banks in the form on telephone exchanges. Old telecome infrastructure needed telephone exchanges in each areas.
It may pick broadband segment business and potential to do well in triple play segment. Telephone, TV, broadband. All these connection provided with single connection.
I am holding this from 170 level :). Last year sold it at 115 and bought roman tarmat at 20 -30 level. Now Roman has moved up with market but this coming down. Now telecom sector is under price war. Even big players revenue going down.
MTNL/BSNL has good quality assets that advantage these companies. Both MTNL/BSNL huge cash reserve + land bank in terms of telephone echanges in each citi, rural, urben. Value unlokcing is not so easy in PSUs. Pvt companies take care of very well for value unlocking.
Hi Mukut,
i have been watching roman tarmat myself.. you think its a good stock... may i kindly have your opinions about this stock..
thanks
best wishes,
samir.
Roman`s IPO price was 175 in 2007. After that Roman was trading at 350+.
That stock from 350 to 17 level in 2008.
There was 2 reason for that 1 market crash and another was Nirmal kotecha holdings.
Nirmal kotecha offloaded 5% shares in open market till roman crashed to 17 level.
Apart from Roman business keep growing. Order book has grown from 350crore to 850crore in last 3yrs. It also has 4 acre land in mumbai which price of around 110crore. So buying roman at 50-60 level is like you are buyingland in mumba at 50% discount price and getting business free of cost.
Promoters also not taking huge salary. Roman should go back to 150+ soon.
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