Today's Call 

#Buy the shares of Plaza Wires Ltd (Rs.89.60) near the CMP for targets of Rs.117/ Rs.132.

Looking back, the past year brought a solid 9.5% increase in revenues for Plaza Wires Ltd. Impressively, revenue has grown by 38% over the last three years, helped by the recent 12 months of growth. Consequently, it's fair to conclude that the company's recent revenue growth has been exceptional.

#Buy the shares of MTNL Ltd (Rs.67.70) near the CMP for targets of Rs.100+.

In recent months, the government has shown a preference for transferring control of MTNL's operations to BSNL without officially merging the two companies. Reports suggested that this approach would avoid some of the logistical challenges of a merger, such as de-listing MTNL and buying back a certain number of shares, which in turn would be beneficial for the shareholders.

Recently, the MTNL announced that it has approved this plan, with the new agreement allowing BSNL to manage the operator for the next ten years. The deal has the potential to be renewed by mutual consent and can also be terminated by either party with six months' notice.

However, this solution comes with its own challenges -- the Department of Telecommunications (DoT) is currently investigating the tax implications of such an agreement, stating that they will not approve the deal until they are certain it will not lead to unexpected tax liabilities for the government. Having understood that, I feel there is no other better option at present to revamp the fundamentals of the MTNL.

So, whatever be the way, it is good to see that the NDA Government is taking steps to revive the health of the MTNL.