Buy Bharti around Rs 300 for target of Rs 350: Agarwal

Rajesh Agarwal, Head of Research at Eastern Financiers Limited advised buying Bharti Airtel around Rs 300 level for a target of Rs 350 in next nine months.

Agarwal told CNBC-TV18, "All the negatives have already been discounted in the price of Bharti Airtel. There has been a knee-jerk reaction on the news flow today about 4G license operators being getting an opportunity to offer voice service. However, I don't think that would make much of a difference because we have seen a lot of smaller players going out of business in the recent past like Uninor shutting down business in Mumbai very recently and MTS has gone out of business."
He further said, "So, there has been a shake out in the telecom industry as such. So, this is going to benefit the existing players like Bharti Airtel, Idea Cellular or Reliance Communication and even Vodafone which is one the biggest players. So, these players already have their subscriber base in place, network is in place and they will have the first mover advantages."
"As far as numbers are concerned Bharti has reported good numbers in Q3 itself although margins were under pressure because of higher net access charges and interest cost. But these things going forward would be taken care of as tariff hikes take place. So, I would suggest a hold, not only a hold but a buy around Rs 300 levels for a target of Rs 350 in the next nine months, Agarwal added.