After set of good news came for telecom sector this month, stocks like Idea, Bharti Airtel, Reliance Industries, have given wonderful returns this month. Reliance Jio has now increased their bundle package price to around Rs.50/3 months which is positive for other telecom companies. Going forward, i think Jio will continue increasing its prices which will positively effect the whole sector.
However, i am writing this post to discuss with you a great opportunity in our markets. I have figured out one stock where possibilities of multibagger returns in a year really exist.
Rcom or Reliance Communication is one of my pick for one year where i think possibilities of great returns really exist. Company’s stock has faced large selling in past few months. Aircel merger and tower sale were earlier selected to be core steps to reduce debt. But now when Aircel merger is no more due to no. of hurdles it faced, company has decided to sell its entire tower business and other assets for paying decided amount of debt i.e 25k crore. However, there is no assurity even now whether the tower deal is going on with any party or not and company would be able to complete this deal before deadline.
All the uncertainty going on in company have forced stock price to must be quote below Rs.20. However, i think this is a great opportunity for investors who can take risk of 50-70 percent for returns upto 300 percent or maybe more. As of now, we don’t know exactly about what would happen in short-term. Whether, company will grab the tower deal or some other solution, or would be classified as NPA.
However, there are only few chances that company will not able to do anything before deadline i.e December end. Further, there are more chances of returning back the decided amount of money to banks by company. Therefore, i think one who can take risk should try this stock for holding one year.
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