Market experts on what to expect from various sectors in 2014 _ Business Today

It is als o attem pting to reduc e the interes t

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Unformatted text preview: c om pany has been trying to reduc e debt for the las t few quarters . It is als o attem pting to reduc e the interes t burden by entering into big-tic ket c om m erc ial m ortgage-bac ked s ec urities deals . Als o, new projec ts launc hed by the c om pany have rec eived a better-thanexpec ted res pons e. The exis ting projec t pipeline and im provem ent in exec ution will ens ure that the c om pany is well-plac ed when the s ec tor rebounds . Indiabulls Re al Estate Debt levels appear to have peaked as expec ted c as h flow helps the c om pany pare debt. Im proving earnings and c as h flow earnings are pos itive for the s toc k. The c om pany's pipeline of ultra-luxury projec ts not only m akes it relatively im m une from ec onom ic s luggis hnes s but als o inc reas es the c hanc es of s ignific antly higher c as h flows in the next few quarters . T ELECOM "M argins will inc h up as c ontribution of data to the ov erall rev enue ris es " Dev en Chok s ey , M anaging Direc tor, KR Chok s ey Sec urities The year 2013 has been a gam e c hanger for the telec om indus try. The governm ent not only tried to reduc e regulatory hurdles by ens uring c larity on is s ues s uc h as m ergers and ac quis itions but als o inc reas ed the foreign direc t inves tm ent lim it in the s ec tor from 76% to 100%. Als o, the approval by the em powered group of m inis ters to a propos al for reduc ing s pec trum pric es by ypr int/201839 16/18 1/2/14 M ar ket exper ts on what to expect fr om var ious sector s in 2014 : Business Today 25-50% will lower c os ts . The indus try went through one of its wors t periods in rec ent tim es as c ut-throat c om petition and regulatory m es s brought down operating m argins from 40% to 25%. Firs t, dis c ounts by new entrants forc ed the es tablis hed c om panies to reduc e tariffs . Then c am e the c ourt trial in the s pec trum alloc ation s c am , whic h brought all polic y-m aking under a c loud, forc ing the Suprem e Court in 2012 to c anc el a total of 122 telec om lic enc es . Fortunately, the indus try is c om ing out of the woods . Com panies have dis c ontinued the s ervic es of inac tive and low-value s ubs c ribers and s hifted foc us to ac tive and revenuegenerating s ubs c ribers . Com petition has eas ed, leading to inc reas e in tariffs . The num ber of data s ervic es s ubs c ribers , who generate dec ent revenues , has been growing 30% on a quarter-on-quarter bas is . Reform s , es pec ially the c larity on M&As rules , will lead to c ons olidation and, thus , an inc reas e in revenue for the bigger c om panies . Margins will inc h up as c ontribution of data to the overall revenue inc reas es . Bharti Airte l T arge t price : Rs 390 The m arket leader ac c ounts for 28% s ubs c ribers and 30% revenue. Its voic e s egm ent is s howing healthy revenue growth, led by an inc reas e in s ubs c ribers and revenue per us er. Blended operating m argin is als o ris ing, led by c os t rationalis ation of India operations and higher Afric a m argins . Im provem ent in key perform anc e indic ators will s upport revenue growth. Data s ervic es c ontinue to s how grow on both s ubs c riber and revenue per us er fronts . W e rec om m end a 'buy' on the s toc k with a pric e target of Rs 390, an ups ide of 16% ypr int/201839 17/18 1/2/14 M ar ket exper ts on what to expect fr om var ious sector s in 2014 : Business Today from the c urrent levels . Print Close URL for this article : http://bus ines s tory/s tock-m arket-experts -expectations -from -various -s ectors 2014/1/201839.htm l @ Copyright 2010 India Today Group. ypr int/201839 18/18...
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This document was uploaded on 02/06/2014.

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