We had recommended Tulip Telecom to our investors at Rs 998 . Here the reasons were linked to a rapid growth in the telecom sector and increasing demand for last mile connectivity. Even the increasing demand for inter-bank connectivity was one of the reasons. After our recommendation the scrip surged ahead but with the weak markets it has declined marginally.
• At its current level, although there are concerns that Wimax may be a threat to the company, the management has clarified that even this could be a business opportunity for
them. At its CMP of Rs 850 the scrip is trading at 12x of its FY08 results. This is relatively cheaper for a company related to the telecom industry. Hence we recommend the
investors to hold the counter at its current level.
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