Buy Bharti Airtel, target of Rs 1024: India Infoline

India Infoline has maintained its buy rating on Bharti Airtel with a target price of Rs 1024 in its July 25, 2008 research report. "Bharti witnessed 8.2% increase in Q1 revenues driven by 11.9% rise in subscriber base; MOU rose a robust 5.3% qoq (on the back of a 7% qoq jump in Q4 FY08) as the company cut STD and national roaming charges. Despite increased tax outgo and lower other income, profit for the quarter increased by 14.1% qoq due to an interest income in the quarter."

"As network coverage reaches a majority of population, we estimate mobile capex to gradually taper off which implies company would have strong cash positions going forward (C&CE at USD 1.6 billion by FY10E) which could be used for inorganic growth or to bid aggressively in likely 3G auctions. Maintain BUY with a price target of Rs 1024, implying a P/E of 16.9x and EV/EBIDTA of 10.8x on our FY10E earnings," says India Infoline's research report.

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