Dear Senior boarders,
I could not find out the reason why only TTML is making loss in Telecom Secor. All other major operators break even within 2 to 3 yrs of their operation. I feel something is wrong with the accounting practice they follow.
I think they are spoiling themselves. I really doubt TTML and TTSL playing game. There is every possibility that TTSL, which is not a listed company, booking their expenses in TTML, so that they are not able to recover and stand alone. Most of the management team both in TTML and TTSL are one and the same. So it is very easy for TTSL to get their expenses booked in TTML. Otherwise how can a telecom operator not able to show profit for so many years!!!!. I feel it requires SFIO audit to be ordered for TTML to uncover the accounting truth
Telecom operators take nearly 4 to 5 years to be profitable and this happened for Airtel also. TTML was acquired from Hughes tele in 2003 and at that time itself was loss making company. Tatas have highest respect in the country for their ethics. They have tried all options, tieing with Virgin, now Docomo to increase share holder value. You will have to be patient to reap benefits and this may take a longer time with price war now started. In november we will have to see the sub additions and that will decide the trend.
nkprabhakar,
perhaps ttml is the best buy in telecom sector today at cmp. You have given correct analysis of telcom companies in general and ttml in particular.
karshin
I have been tracking this stock for the last 5 years and am holding it for the last 3 years now. I too did not exit when it reached 65/- 2 years back. Why did it reach 65/-?
1. Tie-up with Virgin -- Happened March 2008
2. Hiving off Passive infrastructure -- Happened September 2008
3. Possible merger with TTSL -- Awaited.
Over and above they have sold stake to Docomo and we are seeing the whole industry has been shaken after Tata Docomo launched GSM services. For the last 2 months, Tata`s have added more subscriber than any other player.
Now Airetl also has joined the 1p/sec when they said that it will not do so. Who has bought the best benefit to the customer in telecom? TATA`S...Always Customer Ahead.
When Docomo has trusted the company and invested 2.9 billion why we who have invested in thousands / lakhs be worried?
In the market the longer you are in holding good company the chances of making money brighten...If November they continue to add more than any other operator then the fun will begin...lets wait till then.
Now almost all operators have announced 1ps/sec pulse billing.Airtel, Vodafone, idea, Aircel, MTS(New operator). Reliance yet to announce the pulse 1ps/sec. Amoung all the offer, TATA DoCoMo has only a clean offer i.e you call anybody local/STD, mob or landline, you pay 1ps/sec.
Hopefully I think the subscriber would be able to differentiate and show the same faith which they have shown in Aug and September to make TATA Docomo the no:1 interms of subscriber additions.
Yes,even we agree that TTML is good scrip and one should not forget that brand TATA will not let TTML down.Just have patience and accumulate more for sure gains.
The merger with TTSL will be a fiasco as the swap ratio will be such that you will continue to suffer. I think we have all been taken for a big ride. The Tata management have not been proactive enough to assuage the fears, pain and sufferings of the long term investors.
| NIFTY 
