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Summary

Tata Teleservices Broadband
Sameer Jain@mpi605
Feb 11, 2005 09:23 PM, 5178 Views
(Updated Feb 11, 2005)
Tata Teleservices Maharastra

Tata Teleservices( maharastra and pune) circle is a good buy. The reasons for this are




  1. This is a Tata company and hence will definately grow.




  2. the market price of its share is around Rs. 32




  3. The company has not given any dividend yet till the date and is in loss but still it has build up a large consumer network . The main reason for current losses are because of subsidised rated for the Telephone sets i:e @ Rs. 1149 per set contributing a loss of Rs 2000 every set sold .Sooner the company will stop subsidising as and when it reaches the required level. So now in coming years, may be next year company going to be in profit and the share price will shoot up to around Rs 100 mark.






The disavantages may be, if it merges or take over by the parent company then the share holders will have to bear the premium

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