telicom sector of investor prespective-yashpal

8/14/2019 Telicom Sector of Investor Prespective-yashpal

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TELELCOM SECTORFROM

INVESTORS PERSPECTIVE

SUBMITTED BY :-YASHPAL SINGH MBA(II)


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PRESENTATION PLAN

INTRODUCTION

OBJECTIVES OF STUDY

ECONOMY ANALYSIS

COMPANY ANALYSIS & COMPARISION

SWOT ANALYSIS

SUGGESTION & RECOMENDATIONS


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Introduction toIndian Telecom

Industry`The Indian Telecom sector is third largestnetwork in the world.

Subscriber numbers already crossed 300 million.

Compound growth rate of over 40% in respect ofsubscribers.

Monthly additions of above 8 million phones.

Growth impetus from wireless segment with 84%wireless and 16% wired.


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Further access is provided by 54 lakh PCOs

and 5 lakh VPTs.10 million Internet and 7.5 million broadband

subscribers.

All most all the cities have been provided withbroadband connectivity out a total of five

thousand cities


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Players of Telecom

IndustriesBharti Airtel - 33.9 %Vodafone Essar Ltd. -19.6 %

Reliance Communications-12%

BSNL + MTNL 11.8 %

Idea Cellular 11.6 %

Tata teleservices 7.2 %


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OBJECTIVES

To focus on Telecom sectorfrom investors perspective inIndia.

To have comparative analysis oftelecom companies.

To describe and analyze returnof telecom sector companies toinvestors.


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ECONOMY ANALYSISThe Indian telecom industry is affected by

following factors:

Budget

Tax Reduction

Foreign Direct Investment

Contribution to GDP

Impact of Recession


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COMPANY ANALYSIS ANDCOMPARISION


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RATIO ANALYSIS

GROSS PROFIT RATIO


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NET PROFIT RATIO


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EARNING PER SHARE


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CURRENT RATIO


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SWOT ANALYSIS

OF

INDIAN TELECOME

SECTOR


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Strengths:

Huge wireless subscriber potential

One of the fastest growing sectors

FDI limits are 74%

Unified license regime

Market is regulated by Government bodies


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WEAKNESS

Lowest call tariffs

Too many companies are ruling this sector

Value Added Services (VAS) is restricted

because of literacy and language problemsIt is difficult to make into the semi-rural and

rural areas because of the lack of

infrastructure.


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OPPORTUNITIES:

To offer more VAS on GSM, CDMA and InternetService Providers (ISP)

Language independent services. E.g. sending

the message in local language, information

available in local language etc.

New innovations in service providers

Huge content providing to local culture as well

as globallyForeign investments in form of equity or

technology


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THREATS:

Threat of low cost service providers

Political instability

Global interference

The service providers have to incur a huge initial

fixed cost to make a mark in rural markets.

Achieving break-even under these circumstancesmay prove to be difficult.


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SUGGESTIONS &

RECOMMENDATIONS


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Instead of going for one sector, investor should

diversify their investment to minimize their risk

and to obtain high returns.Since, the fundamentals of telecom industries are

better than other banking ,insurance and other

financial sector, investors have better opportunity

in telecom sector

From Investors point of view, the telecom sector

in Indian capital market still remains highly

lucrative, with approximately 8 million users are

added per month, making India the worlds fastest

growing wireless services market.


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telicom sector of investor prespective-yashpal

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