What has held me back on this one is rapidly deteriorating receivables turnover. If that keeps steadily deteriorating there will not be a lot of FCF. The Telcos might use this as a piggy bank by paying their bills really late.
Thanks for the write-up! Broadly agree with the points - seems like a interesting opportunity. Regarding the peer group : you mentioned Bharti Airtel as the Indian peer, which is the 2nd largest Telco in India. However, Bharti Airtel had divested its tower business to form another listed entity called Indus Tower (INDUSTOW:IN) - so that would be a better peer to compare to.
Thanks for sharing this interesting idea, Michael. I learnt a lot from your presentation.
The VIC write ups & comments were good too.
What has held me back on this one is rapidly deteriorating receivables turnover. If that keeps steadily deteriorating there will not be a lot of FCF. The Telcos might use this as a piggy bank by paying their bills really late.
Thanks for the write-up! Broadly agree with the points - seems like a interesting opportunity. Regarding the peer group : you mentioned Bharti Airtel as the Indian peer, which is the 2nd largest Telco in India. However, Bharti Airtel had divested its tower business to form another listed entity called Indus Tower (INDUSTOW:IN) - so that would be a better peer to compare to.
I also did a deep-dive a few months ago on Indus Towers, if you're interested: https://opensourceinvestor.substack.com/p/indus-towers-a-bet-on-the-future
Oops.....can't seem to attach pics here. Is there another way to share them with u?
Have U deactivated listening mode?
Thank you for this deep dive. Sharing some comments re from China Tower IR.