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Informist, Friday, Jan. 24, 2025

MUMBAI – Telecom stocks may continue their positive momentum and see further gains despite weakness in the overall market, analysts said. The sentiment regarding telecom stocks will also be boosted by potentially increased competition in a traditionally concentrated space, as Bharat Sanchar Nigam Ltd. and Vodafone Idea Ltd. will enter the 5th generation network space by the next financial year, said Rishubh Vasa, a research analyst at IndSec Securities. 

Many telecom stocks have seen a positive trend, with Bharti Airtel Ltd., Vodafone Idea, and Tata Teleservices (Maharashtra) Ltd. gaining over the past 2–3 weeks. Analysts said this uptick might extend this week. The Nifty Midsmall IT & Telecom index is expected to gain and face selling pressure at 10700 points, Mugilan K., a technical analyst at DBS Cholamandalam Securities said. In case of a fall, the index will take support at 10550 points, Mugilan said. The index ended Friday at 10696.05 points, down 1.1%. 

Tata Communications and Tata Teleservices reported its December quarter earnings this week. Wednesday, Tata Communications reported a consolidated net profit of INR 2.36 billion, missing analysts' estimates of INR 2.68 billion, on revenues of INR 57.98 billion. In its post-earnings conference call, the company said it is in line to achieve its revenue target of INR 280 billion by 2026-27 (Apr-Mar). 

After the earnings, brokerage Motilal Oswal Financial Services raised its target price on the stock to INR 1,850, but reiterated its 'neutral' rating, saying that it awaits consistency in growth before turning more constructive on the stock. However, investors were underwhelmed by the performance, as the stock has fallen almost 4% since its earnings. 

Meanwhile, Tata Teleservices's net loss in the December quarter narrowed to INR 3.15 billion from INR 3.3 billion a quarter ago and INR 3.08 billion in Oct-Dec last year. The company Thursday reported a revenue of 3.33 billion. The stock fell 2.5% Friday. 

TOP HEADLINES

* HFCL gets INR 21.68-bln order from Rail Vikas for cables, telecom equipment
* Earnings Review: Indus Towers consol PAT jumps up, topline stays sluggish
* Tejas Networks' Oct-Dec net profit falls 40% on quarter, sales down 6%
* Tata Tele Maha net loss narrows QoQ to INR 3.15 bilion in Oct-Dec
* Moody's ups Bharti Airtel rating outlook, hints at a rating upgrade
* Analyst Concall: Tata Comm in line to meet FY27 revenue, EBITDA margin goals
* Data alert: India net lost 1.77 mln mobile users Nov; RJio users up 1.21 mln
* Earnings Review: Tata Comm Oct-Dec PAT up 4% QoQ driven by digital platforms
* ITI gets INR 1.67-bln order from Maharashtra government
* Earnings Outlook: Strong digital platform svcs to drive Tata Comm's revenue
* RailTel Corp of India bags INR 467.92-mln order from North Western Railway
* SC admits tax dept's appeal vs HC order to quash notices to Vodafone Idea
* SC upholds HC order asking tax dept to refund INR 11 bln to Vodafone Idea
* Vodafone Idea denies getting any govt communication on telecom dues waiver
* Bharti Airtel, Bajaj Fin partner to create digital platform for fincl svcs
* Earnings Outlook:Indus Towers sales, EBITDA seen aided by customers' rollout

Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:

End

US$1 = INR 86.21

Reported by Akash Mandal

Edited by Akul Nishant Akhoury

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