Analyst’s views on Reliance moving to GSM

Category: Reliance | 1 Comment | Posted on June 16, 2006

Moneycontrol has a interview with Susanta Mazumdar of UBS, who believes that the discount between the prices of RCoVL and Bharti Airtel on the bourses will narrow down by 2008-09.

With regards to discount, it would be unfair to compare in 2007 because RCoVL is a year or two behind Bharti in terms of profitability and the economy of scale has started kicking in just now. They have started getting the infrastructure network advantage now. So if one looks at 08-09, the discount will narrow down significantly and there will be a small discount with respect to Bharti. But if one looks from the perspective of subscriber addition, we need to see how the revenue for the quarter is behaving.

Mazumdar also explains the raison d’

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