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Have Telecom Stocks Bottomed Out?

Most telecom stocks are trading at their 52-week low after Reliance Jio announced its aggressive entry  

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Published 4 years ago on Nov 08, 2016 2 minutes Read

Harsha Upadhyaya, Chief Investment Officer, Equity, Kotak AMC

As things stand, the telecom sector would continue to see intense competition going forward. Even in the past, when the industry tried to consolidate and get some pricing power, the return ratios were in low single-digits. Even when the players were making reasonable profits, the return ratios have been low. Some players are making losses and have large debt on their books. Couple of years back, the issue of spectrum auction cropped up, but now it has become a recurrent business cost. Telecom players need to keep buying spectrum to stay competitive and sustain

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