Bullish on telecom stocks; ARPUs will continue to move up: Sridhar Sivaram
«Power and power equipment is something that we really like because we think that in the wind and in solar we could see doubling of capacity in the next three-four years,» says Sridhar Sivaram, Enam Holdings.
So, when you say that you find more value in largecap pocket, which are the themes in largecap which you like? Is it telecom? Is it anything else?
Sridhar Sivaram: So, telecom is something that we have been bullish for a while and the rough numbers based on the ARPUs that have gone up is that the industry revenues can go up by about 40-50 thousand crore, now that goes straight into the EBITDA even if you take a 10 times EV-EBITDA that is 5 lakh crores of extra market cap for the industry.
Then, you can figure out how you want to allocate between the three players, but that gives you a reasonable leeway to play around with that. We think ARPUs will continue to move up given that they have been flat for multiple years now, so that is a secular theme that we like.
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Financials, I already spoke about. Power and power equipment is something that we really like because we think that in the wind and in solar we could see doubling of capacity in the next three-four years.
Wind from some about 40 gigawatts to around 80 and in solar from about 70 to say about 200 and same is with
