Moneycontrol
May 17, 2017 01:54 PM IST | Source: Moneycontrol.com

Buy Bharti Infratel; target of Rs 423: Axis Direct

Axis Direct is bullish on Bharti Infratel has recommended buy rating on the stock with a target price of Rs 423 in its research report dated May 15, 2017.

Buy Bharti Infratel; target of Rs 423: Axis Direct

Axis Direct's research report on Bharti Infratel


Bharti Infratel (BHIN) recorded strong tenancies (7K gross) on accelerated ramp-up in data networks by Top 3 incumbents and material benefits from RJio roll-outs for BHIN standalone. Revenue and EBITDA were higher than our estimates but higher tax rate led to lower PAT.


Outlook


Incorporating these risks, our scenario analysis indicates that loss to business value will be Rs 97 per share (at 12% tenancy loss) and Rs 131(at 18% tenancy loss). We take the average of the two (15% tenancy loss) and build in negative effect. Consequently, our DCF value (target price) stands at Rs 423.


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