Flash Focus: Fast Facts For Smart Investors 

#The stock of Jubilant Ingrevia Ltd (Rs.826) made an intraday high of Rs.839. We can look for targets of Rs.900/920+ in the coming days. Photo: Telecom Talks.

#The stock of Suzlon Energy Ltd (Rs.65.33) hit the Buyer Freeze. Meanwhile, Suzlon Energy announced on Tuesday (December 31) that the Income Tax Appellate Tribunal (ITAT) has delivered a favorable ruling, canceling a tax penalty of Rs.87.59 crore imposed on the company for the financial year 2015-16. 

Suzlon Energy Ltd had previously disclosed the penalty orders, including a Rs.87.59 crore penalty for FY16, in its communication dated March 28, 2024. The company later appealed these penalties before the Income Tax Appellate Tribunal (ITAT), which ruled in its favor regarding the quantum of disallowances for FY16.

A daily close above the resistance level of Rs.70 could lead to an upside target of Rs.78/Rs.81 in the near term.

#The scrip of 3i Infotech Ltd (Rs.33.67) hits the Buyer Freeze. I have been bullish on the counter since some days and I had already presented a report on the company on this Blog.

#Since most of the Renewable Energy companies like IREDA Ltd (Rs.225), Waare Renewables Ltd (Rs.1409.94), Websol Energy Ltd (Rs.1739), etc are doing well today. We can look for similar moves in Indowind Energy Ltd (Rs.24.20) which is also now a Solar Energy player, along with its wind turbine business.

#Among the banking counters we can look towards, Bank of Maharashtra Ltd (Rs.53), Union Bank Ltd (Rs.120) and Central Bank Ltd (Rs.53 71) and can be accumulated with an eye on expected Repo rate cut in this month.

#The government’s approval of a major bank guarantee waiver for spectrum payments has provided much-needed relief to Vodafone Idea Ltd (Rs.8.08), prompting Citi to assign a "buy" rating with a target price of Rs.13 per share, indicating a 70% upside. This move is expected to enhance the telecom operator's funding prospects and ease financial pressures after a significant decline in 2024. It also reflects the government’s continued supportive stance towards the telecom sector, aiming to help operators focus on expanding 4G and 5G networks in India. 

According to technical analysis, the stock shows a bullish short-term trend but remains bearish in the long term. Those who are holding the share can look for averaging at the current levels.

#Taking cues from the above we can look forward for targets of Rs.100 - plus for the shares of MTNL (Rs.50.40). 

Historically, employee costs constituted 75-80% of MTNL's revenues. To tackle this challenge, the company introduced a Voluntary Retirement Scheme (VRS), leading to a significant reduction in its workforce. By the end of the financial year, March 2024, MTNL had decreased its headcount by 91% compared to its levels a decade earlier.

On the flip side, it is true that MTNL continues to face losses as higher expenses and shrinking revenues impact its operations, however the government had announced plans to transfer the company’s business to BSNL and monetise its assets. Furthermore, the Telecom Minister Jyotiraditya Scindia has assured that MTNL’s debt is backed by a sovereign guarantee, minimising risks to creditors.

One of the major measures to revive MTNL include proposals to merge it with BSNL and expanding its services beyond Delhi and Mumbai. Accordingly, a few years back, there were talks around the merger of both state-run telecom companies, viz. BSNL and MTNL to streamline operations. But then there were no updates and the merger was seemingly put to the side by the government. 

Besides, even though according to a recent news report, the merger of both companies could be very much in the books, the market is awaiting more clarity on this front.

Meanwhile, in October 2024, reports quoting Union Telecom Minister Jyotiraditya Scindia highlighted that Bharat Sanchar Nigam Limited (BSNL), the state-run telecom operator, had successfully deployed over 50,000 indigenous 4G sites nationwide, as confirmed by the Ministry of Communications.

By October 29, 2024, BSNL had installed more than 50,000 sites, with over 41,000 of them fully operational. Of these, approximately 36,747 sites were established under Phase IX.2 of the project, while 5,000 sites were deployed as part of the 4G Saturation Project, funded by the Digital Bharat Nidhi Fund (formerly the Universal Service Obligation Fund or USOF), the ministry stated.

Telecom Minister Scindia also announced that BSNL plans to complete its nationwide 4G rollout by June 2025 by deploying 1 lakh sites. These sites will be upgraded to 5G within a month of deployment. BSNL has already conducted trials for its 5G Radio Access Network (RAN) and core network on 3.6 GHz and 700 MHz frequency bands. This means BSNL might launch 5G services within July, 2025. 

I had already placed a report on the company at: SumanSpeaksPlus.

#My recent pick, AngelOne Ltd (Rs.3000) made an intraday high of Rs.3056. We can look for future targets of Rs.3100/3200.