Buying

Both companies, RCom and RPower, are burdened with huge debt. RCom face intense competition from well entrenched players like Airtel and Idea. Also, the spectrum costs are huge. RPower has huge capex requirements in running a power plant. Look at NTPC. The stock has never given good returns.

Instead, if you are buying for the long-term, why don't you focus on secular growth stories like Pharma stocks? These stocks have shown a consistent performance in the past several years and have become huge multi-baggers. They are debt-free, have huge free cash flows, excellent management and a huge demand for their products.

Some stocks that you can research are JB Chemicals, Indoco Remedies, Ajanta Pharma etc.

 

Well, whether one should buy a particular stock or not is a personal decision based on one's conviction in the stock and the management.

From an analytical point of view, JB Chem looks like a safe stock given (i) its relatively low P/E in comparison to other mid-cap stocks, (ii) the huge cash in its books, (iii) its management pedigree and (iv) the indication of the management that it is looking to deploy the cash soon.

The stock is a bit subdued at present because of the crises in Russia and the Crimea region. However, when that crises is fully resolved, the stock may show an upmove.

Disc: I have the stock in my portfolio and intend to buy more on dips.