Bharti slips 4%; Credit Suisse cuts target on Project Leap

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Moneycontrol Bureau Shares of Bharti Airtel slipped 4 percent intraday on Tuesday as Credit Suisse has maintained underperform rating. The brokerage has also lowered target price to Rs 270 per share and cut earnings per share of FY18 by 6 percent.

Credit Suisse is worried about Bharti Airtel's Project Leap, wherein it is planning to invest Rs 60,000 crore over three years. The brokerage feels Project Leap is a 40 percent step-up in the annual capex run-rate while surprise for markets could come from not only the increased per year quantum, but also its sustenance over a three year period.

"We see this announcement as a consequence of rising competitive concerns, with Reliance Jio set to enter the sector, and continuation of the rising capex trend that started with aggressive spectrum auction participation over the last couple of years. The other symptoms of market share loss and margin compression could occur post launch by Reliance Jio," Credit Suisse says in a note.

Credit Suisse says Bharti may see renewed capex thrust as a continuation of heightened capex intensity by the incumbents, prompted by large-scale network rollout by Reliance Jio. It is also cautious that the cash flow situation could get even worse for telecom companies if the government decides to conduct a fresh round of spectrum auctions in 2016 as leading telecom companies will find it difficult to stay away from these auctions. At 11:59 hrs Bharti Airtel was quoting at Rs 323.70, down Rs 10.80, or 3.23 percent on the BSE. Disclaimer: Reliance Jio is a part of Reliance Industries that  owns Network 18 Media & moneycontrol.comPosted by Nasrin SultanaFollow @NasrinzStory