India 4G Road map - Invest in On mobile Global with long Term Horizon


On mobile Global is one of the major players in Indian Mobile VAS ecosystem with strong presence across different geographies. Post MVAS regulation implementation in India during 2011-12, most of the Mobile Value Added Company underwent major shock wave and tried hard to cover themselves from direct and indirect impact. The Listed On mobile Global equity price went through major hammering. Investor also lost their confidence in Company Compliance which led to major CXO level exist.

On mobile Global during 2014, called as major laggard in Indian equity market when its price even went to INR 28 to 29 ranges. By Early 2015, management started putting all the building blocks of their product line and kept their focus on Ring back tone which helped them to gain Telephonic business in Europe to Americas whereas gain business from Airtel Africa unit. Management also managed to sell non performing business unit and invested the same in data centric business to offer data centric service, platform to B2B and B2C. It is expected that their investment in content procurement is going to bring fruit with the higher adoption by end consumer post data price war start between Incumbent Mobile Service Provider and Reliance Jio.

The equity price started recovering and by the end of 2015, On mobile Global equity gave excellent return to its investors. Currently the equity price is hovering between INR 115 to INR 124 and company is relying heavily on fully fledged adoption of 4G network by the end user. Most of On mobile global competitor changed their strategy and moved into the Application segment whereas On mobile global invested heavily on the platform side which kept their differentiation in the marketplace.

In my point of view, the dividend paying company as well as active share buyback on regular interval helped On mobile global to regain their investor confidence. I will not be surprised in a scenario, On mobile give further 50% return in next 12 month given the dynamics of Telecom sector in geographies they are operating.

In my point of view, retail investor should think of buying the equity on delivery basis rather than F&O basis to be on the safer side.

Disclaimer; I invested in Onmobile Global and advise reader or potential investor's to consult their financial advisor before investing

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Visionary Leader with 22 years of multi-functional experience - combine astute tactical, strategic, business, technology and industry skills in ICT domain at domestic and international level (Wired/Wireless/ networks /platforms/ connected device) .... More

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