CMP: 110

Tulip Telecom Ltd. operates as a data communication infrastructure and connectivity provider. The Company provides intra-city and inter-city connectivity, network integration services, designing, supply and installation of the networking equipment.

Tulip Telecom is a decent bet in budding mid-cap space. Its currently trading at a P/E of less than 5 with dividend yields well over 1% in the last 12 months. The company runs at a debt of 1755 Crores with 214 Crores cash in hand. Debt to Profits ratio is at 4 which is above safe levels of 2-3. Revenues have risen strongly from 508 Crores to 2350 Crores in the last 5 years. Profits have also grown at rapid pace from 49 Crores to 310 Crores in the last 5 years. NPM has risen from less than 10% to 13% in the last 5 years. Buy and book profits when Nifty peaks.