The Cabinet announced a four-year embargo on the payment of the Aggregated Gross Revenue (AGR) dues, which came as a huge relief to the debt-ridden carriers Vodafone Idea and Bharti Airtel.
The move is likely to provide interim cash flow relief to the sector, which is now burdened by dues from two of the three largest private carriers.
For using government-owned spectrum, all telecom businesses in India are required to pay a portion of their income as spectrum charges and license fees to the Department of Telecommunications (DoT).
Bharti Airtel, often known as Airtel, is an Indian telecommunications services business headquartered in New Delhi
Over a three-year period, the stock returned 80.97 percent, compared to 46.34 percent for the S&P BSE Telecom index. The stock returned 80.97 percent over three years, compared to 49.67 percent for the Nifty 100.
Around 22% of Bharti's debt is denominated in foreign currency and is not hedged. The rupee's weakness might put pressure on the company's bottom line. Annual sales growth of 13.17 percent surpassed the company's three-year CAGR of 6.39 percent.
A share of a struggling telecom On the BSE, Vodafone Idea gained 7.01 percent intraday to Rs 9.30, compared to a previous closing of Rs 8.69. The Vodafone Idea share price is higher than the five-day, twenty-day, fifty-day, and hundred-day moving averages, but lower than the 200-day moving averages. Later, the shares finished at Rs 8.93, up 2.76 percent.
Telco AGR dues will be suspended for four years, according to the government. Telcos would also be able to give up unutilized spectrum. Telcos will be offered the option of turning a portion of their dues into government equity now and a portion of their dues into government equity after four years.
Tata Tele Business Services Limited, formerly Tata Tele Services Limited, is a Mumbai-based Indian broadband and telecommunications company. It is a subsidiary of the Tata Group, a conglomerate based in India. Stock returned 632.99 percent over three years, compared to 52.01 percent for the Nifty Midcap 100.
Over a three-year period, the stock returned 632.99 percent, compared to 46.34 percent for the S&P BSE Telecom index. In the fiscal year ended March 31, 2021, the company spent 149.58 percent of its operational revenues on interest charges and 4.73 percent on labour costs.
Bharat Sanchar Nigam Limited owns Mahanagar Telephone Nigam Limited, d/b/a MTNL, which is headquartered in New Delhi, India. MTNL operates in India's metro cities of Mumbai and New Delhi, as well as the African island nation of Mauritius.
Mahanagar Telephone Nigam Ltd., founded in 1986, is a Small Cap business in the Telecommunications industry with a market capitalization of Rs 1,178.10 crore.Over a three-year period, the stock returned 17.72 percent, compared to 46.34 percent for the S&P BSE Telecom index. Stock returned 17.72 percent over three years, compared to 45.43 percent for the Nifty Smallcap 100.
Bharti Enterprises Ltd, another unit of the Indian multinational conglomerate, is ranked second among the Best Telecom Stocks to Buy. Bharti Infratel, now known as Indus Tower, is a tower and infrastructure provider. Only 2.65 percent of trading sessions in the last eight years had intraday gains of more than 5%.
Annual sales growth of 99.07 percent surpassed the company's three-year CAGR of 28.41 percent. The stock returned -10.32 percent over three years, compared to 49.67 percent for the Nifty 100.
Other popular telecom stocks include Tata Communications, ITI Ltd., Tejas Network, and Reliance Communications.
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