Finalytics

Amid this pandemic crisis, the telecom sector is what grabbed my eyes because of the high volatility in
the share prices of major operators. Although the telecom sector is expected to be benefitted from
the crisis as the data and call consumption of per person is expected to increase exponentially but
currently this sector is suffering badly because of ADR dues of telecom operators to the government.
Further, it can be seen that this sector is inviting a lot of FDI in recent months which further will
bolster this sector in the long run. Furthermore, it is expected that with the advent of the 5G network
this sector will see a drastic boom in share prices of major network operators as the high-speed
internet is demanded in every industry and people are addicted to use high speed data. The
consumption and rate increase in data prices will increase the profitability in this sector that’s why
network operator companies want to grab more and more market share for long term growth
perspective. Because of all these reasons I thought to pick this sector as this sector has a lot of
opportunities and challenges ahead and it would be interesting to see how things unfold in future.
With the whole country being in a lockdown, hotel industry and tourism is one of the sectors
which is affected the most. In most of the restaurant’s occupancy level became nonexistent and
near 0 revenue. Still restaurants have to incur fixed expenses like salaries to staff, license fees,
interest expense (which is at a peak of 16% on average) etc. 5-star restaurants are expected to
suffer the most because of huge fixed cost and debt. Inefficient small-scale restaurants might
have to shut down because of 0 revenues. Further it is expected that consolidation in the
industry will increase in future as big brands will try to leverage the position of small hotels and
gain market share. Oyo and Airbnb will be flourishing as more and more people would be
looking out for online hotel room booking once the situation improves. Under this situation, the
industry is going to go sick very fast unless they have the external source of capital, like holding
company.
But there is a silver lining also in this situation, Because of all these disastrous affects share
prices of most of the hotels are trading at the lowest of their PE bands as the market
perspective is negative for this industry. So, it is great time to invest in the shares of hotel
sector and hold for few years to get greater average return.
Bharti Airtel Limited, also known as Airtel, is an Indian global telecommunications services
company based in New Delhi, Delhi NCT, India. It operates in 18 countries across South Asia and
Africa, and also in the Channel Islands. Airtel provides GSM, 3G, 4G LTE, 4G+ mobile services,
fixed line broadband and voice services depending upon the country of operation. Airtel had
also rolled out its VoLTE technology across all Indian telecom circles. It is the second largest
mobile network operator in India and the second largest mobile network operator in the world
with over 423.28 million subscribers. Airtel was named India's 2nd most valuable brand in the
first ever Brandz ranking by Millward Brown and WPP plc.
Airtel Businessconsists largely of six products: cloud and managed services, digital signage,
NLD/ILD connectivity (VSAT/ MPLS/ IPLC and Ethernet products), Wi-Fi dongles, voice
solutions[buzzword] (like toll free numbers, TracMate, and automated media reading) and
conferencing solutions (VoIP, audio, video, and web conferencing) serving Industry verticals like
BFSI, IT/ITeS, manufacturing, hospitality and government.
Services under mobile data include BlackBerry services; a web-enabled mobile email
solution[working on 'push technology'; a USB modem that helps in getting instant access to
Internet and corporate applications; Airtel Data Card, which enables accessing the internet
anytime; Easy Mail, a platform that provides access to personal/corporate e-mails independent
of handset operating system; and application services that shorten the queues at the billing
section, off-load the pressure on the billing staff and bring convenience to the user.
Above are the reasons that intrigued me to choose airtel
Tata Communications Limited is an Indian telecommunications company. It's part of the Tata
Group.
Tata's communications network spans more than 500,000 km of subsea fibre and more than
210,000 km of terrestrial fibre. The company has invested $1.19 billion in its global subsea fibre
network. It provides network services and software-defined network platforms, such as
Ethernet, SD-WAN, Content delivery network (CDN), Internet, Multiprotocol Label Switching
(MPLS) and Private Line. It has more than 400 Points of Presence (POP) with data centre and
colocation in 44 sites.
Tata Communications offers Ethernet services that can connect its customers in global offices at
speeds of up to 10 Gbit/s in point-to-point or multipoint configurations.
Tata Communications International Private Line offers customers a variety of routing, uptime,
and service options for its customers global communications. It delivers voice, video and data
connectivity built on its subsea cable network, including a fibre optic ring, and more than 20
consortium cables covering 300,000 km over 200 countries and territories.
Tata Communications has a data center network located in 44 locations worldwide. Tata
Communications data centers meet international standards for redundancy and are integrated
directly with its global IP network.
I choose this company as it is a part of TATA and therefore it is reliable and share price is
expected to be less volatile.

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Amid this pandemic crisis, the telecom sector is what grabbed my eyes because of the high volatility in

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