Idea Cellular Limited and Stock Tips for Beginners

Share Market Tips for BeginnersCompany Review

Idea Cellular, is a part of Aditya Birla group, is one of India's leading Global System for Mobile Communications services operator. Idea Cellular has licenses to maneuver in all Twenty Two service areas. Idea Cellular furthermore offers value-added services like, call conference, General packet radio service (GPRS), Global Positioning System (GPS) and also provides customized solutions according to business specific needs. The Company was founded on 1995 and its Head Quarters are in Mumbai, India and the Ceo was Mr. Himanshu Kapania and the founders were Aditya Vikram Kumar Mangalam Birla,

G. D. Birla.


Company Financial View

Idea Cellular Limited has registered excellent results for the quarter ending September 2014. The revenues from operation grow by about 20 percent to Rs.7569.92 crores vs. Rs.6323.26 cr. in the year ago quarter while it grew ~0.12 percent QoQ. Operating profit climbed sharply by ~49 percent at Rs.1311.92 crores in Q2FY15 while aligned with Rs.878.59 crores in the First Quarter FY15. The attuned net return stand at Rs.755.88 crore in the Second Quarter FY15 as alongside Rs.447.61 crore in the preceding quarter; register a sharp growth of ~69 percent. On the margins front, operating margin climbed about 571bps at 17.33 percent as against 11.62 percent on QoQ, while net profit margin expanded 407bps at 9.99 percent from 5.92 percent QoQ. EPS Stood at Rs.2.11.

Company Assessments  

Idea Cellular is the best ever budding Indian telecom entertainer with an amassed market share of 17.1 percent. Its revenues have grown at a Compound Annual Growth Rate CAGR of 18.60 percent over First Quarter FY12 to First Quarter FY15, outperforming the industry which has mature at a Compound Annual Growth Rate of 10.70 percent over the identical period. Its market share over the similar epoch has seen a substantial improvement from 13.90 percent in Q1FY12 to 17.1 percent in Q1FY2015. Growing revenues; improving balance sheet and increasing market share in a highly competitive market is remarkable; depicting the company's strong execution and brand-building facilities. We persist to deem that the Indian tone of voice and data market is likely to improve and Idea Cellular with its strong brand equity and superior execution capabilities would ride on the rising wave of this market. Therefore we embrace a optimistic view on this company as it is trading at an attractive valuation at 20x and 19x of FY15 Earnings Per Share of Rs.7.58 and FY16 Earnings Per Share (EPS) of Rs.8.09. Idea Cellular Limited is trading in Indian Stock Market at Rs 158, recommended to buy near Rs. 158-155 levels for investment horizon for Stock Tips for Beginners; it may touch Rs. 200 in a time period of 6-9 months.

BSE ID: 532822