This report is an updated version of the report published on 14 September 2022 at 08:03 AM GMT+1.

Section 1.0. Communications Sector Landscape, Trends & SWOT Analysis

The Communication sector market segment comprises Companies that provides services pertinent to transmission of data through word, voice, audio, and video. This includes Telecommunications and Mobile Phone entities. The sector can further breakdown into Wired Telecommunications Carriers, Wireless Telecommunications Carriers, Telecommunications Resellers, Satellite Telecommunications, Cable, and Other Program Distribution, among others. The advantage of investing in such stocks that it offers global reach, reliable sales prospect, and high growth potential with constant investment in new technologies and innovation.

Section 1.1. Trends in the Communications Sector

Section 1.2. SWOT Analysis

Section 2.0. Sector Risks & Opportunities

Section 2.1. Risk Exposures to Communications Sector

Section 2.2. Communications Sector Outlook

As per the Office for Communication (commonly known as Ofcom), the UK’s data usage in Q1 2022 continued to increase rapidly, with volumes up 311 petabytes (PB), reflecting 24.3% year-on-year rise to 1,592 PB. Similarly, UK’s mobile telephony services generated £3.0 billion in retail revenues in Q1 2022, a £3m increase from a year previously. Going forward, the Communication sector can face new opportunities with faster mobile and fixed wireless connections, rising interest in edge computing, and demand for deployment of advanced wireless networks. Moreover, with the increase in connected devices and demand for viewing online videos, the demand for data usage shall surge further.

Adjacently, the telecom market of the United Kingdom is one of the largest in Europe, which faces cut-throat competition in terms of pricing for end-users. The government is supporting the industry to have a fully fibred infrastructure by 2033. Similarly, the fixed-line voice segment is making its way for IP-delivered content. However, the landscape of Telecom Companies can also be challenging with infrastructure costs related to 5G broadband development.

Section 3.0. Airtel Africa PLC (Buy at GBX 143.70, closing price as of 13 September 2022)

3.1 Company Details

3.2. Key Metrics in Pictures

3.3 Valuation and Technical Guidance

Section 4.0: Bigblu Broadband PLC (Speculative Buy at GBX 51.40, closing price as on 13 September 2022)

4.1 Company Details

4.2. Key Metrics in Pictures

4.3 Valuation and Technical Guidance

Please note markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 14 September 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.

 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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