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Buy Bharti Airtel with target of Rs 1179: India Infoline
India Infoline has maintained buy rating on Bharti Airtel with target price of Rs 1179 in its July 25, 2008 report. Brokerage house reduce FY09 earnings estimate by 4% to reflect higher energy and spectrum costs.
India Infoline has maintained buy rating on Bharti Airtel with target price of Rs 1179 in its July 25, 2008 report. "1QFY09 saw Bharti Airtel reporting revenue of Rs 84.5 bn and EBITDA margin of 41.5%, marginally below expectation. Mobile ARPU fell by only 2.1% QoQ to Rs 350. With strong all-round performance, PAT grew by 9.3% QoQ, despite a Rs 1.48 bn FX loss. Management opines that tariffs are bottoming out and that inflation is unlikely to interrupt growth. However, imminent regulatory headwinds will combine with the likelihood of re-engagement with MTN and affect sentiment. We reduce our FY09 earnings estimate by 4% to reflect higher energy and spectrum costs. We maintain Buy with a DCF-based target price of Rs 1,179. While regulation may hurt Bharti's earnings, it along with 3G will likely strengthen long-term competitiveness." According to India Infoline report.
