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Last Updated : Jun 28, 2016 10:48 AM IST | Source: Moneycontrol.com

Bharti Infratel slips 4% on slew of downgrades

Shares of Bharti Infratel slipped 4 percent intraday Friday on slew of downgrades. In a latest Goldman Sachs has downgraded the telecom tower company to sell from neutral with a target price of Rs 307, indicating 12 percent downside from current levels.

 
 
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Moneycontrol Bureau


Shares of Bharti Infratel slipped 4 percent intraday Friday on slew of downgrades. In a latest Goldman Sachs has downgraded the telecom tower company to sell from neutral with a target price of Rs 307, indicating 12 percent downside from current levels.


Goldman Sachs feels that the company has outperformed Indian telecom over the last three years on steady cash flows and expanding margins. The brokerage firm thinks Bharati Infratel is unlikely to see linear expansion in tenancy/margins, contrary to market expectations.

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JM Financial has also downgraded to sell from hold with a target price of Rs 350 per share, indicating 15 percent downside based on weaker growth-outlook, driven by lower tenancy-additions and likely cuts in monthly rentals upon renewal from FY19.


The brokerage forecast revenue and EBITDA growth rates to come off to 6-7 percent post FY18.


"Further downside may come from higher opex inflation, as we have projected a moderate 3 percent annual growth in opex per tower," it says.

Bank of America Merrill Lynch has also downgraded it to underperform from buy  on higher risk of the rental renegotiations happening in favour of the telecom companies. 


Meanwhile, the company is buying back shares worth Rs 2,000 crore on a proportionate basis from the shareholders though tender offer."The total number of shares to be bought back in the buy-back shall be 4.70 crore equity shares, representing 2.48% of the total issued and paid-up equity capital of the company," it added.


June 16, 2016 was record date for the purpose of buy-back of equity shares.


At 12:30 hrs Bharti Infratel was quoting at Rs 340.05, down Rs 8.10, or 2.33 percent on the BSE.

Posted by Nasrin Sultana
Follow @NasrinzStory



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First Published on Jun 17, 2016 08:01 am
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