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Informist, Friday, Jun. 27, 2025

MUMBAI – Telecom stocks are expected to consolidate next week, with any sharp movement to be driven by stock-specific news. Analysts said there are no real fresh triggers for the sector visible in the near-term, with June quarter earnings being the nearest concrete trigger.

Analysts said companies such as Bharti Airtel and Reliance Industries' Jio Infocomm look strong in the medium to long term. Bharti Airtel's expanding market share and widening average revenue per user to Reliance Jio is positive for the former, ET Now reported global brokerage CLSA as saying Thursday. The brokerage said there may be increased demand for shares of Indus Towers due to its cheap valuation, relatively high dividends, and Vodafone Idea's investments in 4G and 5G which may lead to increased orders for the company.

The brokerage also said that Tata Communications' enterprise business, which offers earnings before interest, tax, depreciation, and amortisation compound annual growth rate of 15%, is also attracting attention. On the other hand, Bharti Hexacom's expensive valuations may see the stock facing selling pressure, it said.

Next week, Bharti Airtel looks strong and is likely to move in a range of INR 1,980-INR 2,060, a technical analyst at a domestic brokerage said. The stock ended 0.6% higher at INR 2,027.10 on the National Stock Exchange on Friday, having touched an all-time high of INR 2,039 earlier in the session. On the other hand, Vodafone Idea is likely to move in a range of INR 6.80-INR 7.80, the analyst said. The stock ended nearly 2% higher at INR 7.38 on Friday.

The biggest news for the sector this week was that the government might provide Vodafone Idea additional relief on regulatory dues. After the news broke on Tuesday, shares of the company shot up over 7%. The stock ended 4% higher the following day despite the company clarifying that it has not received any communication from the government on relief in adjusted gross revenue dues of INR 840 billion.

Over the medium term, growth of the telecom sector looks robust, analysts said. "India's 5G mobile penetration is expected to rise from 24% or 290 mln (million) 5G subs (subscribers) at end-CY24 to 75% or 980 mln (million) 5G subs by end-CY30," JM Financial said in a report, citing Ericsson's mobility report. "Growth in 5G adoption in India is likely to be driven by rising demand for data, 5G population coverage of over 90%, and large 5G fixed-wireless-access (FWA) deployments; FWA roll-outs will be driven by the need for accessible broadband in rural and semi-urban areas and availability of affordable 5G FWA customer premises equipment," the brokerage said.

TOP HEADLINES

* Tejas Networks, Rakuten Symphony tie up for interoperable 5G solutions
* No govt communication on INR-840-bln dues relief, Vodafone Idea clarifies
* ITI gets final tranche of INR 250 mln from C-DoT as part of land sale pact
* ANALYSIS: Nifty 200 telecom cos beat Jan-Mar PAT view, but miss sales view
* BSNL's 5G to be priced starting INR 999, pilot projects to go live by Sept

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

Reported by Akash Mandal

Edited by Ashish Shirke

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