Buy Bharti Infratel; target of Rs 450: Firstcall

Firstcall's reserach report on Bharti InfratelBharti Infratel is India's leading provider of tower and related infrastructure and it deploys, owns and manages telecom towers and communication structures, for various mobile operators. The Company's consolidated portfolio of over 87,000 telecom towers, which includes over 37,000 of its own towers and the balance from its 42% equity interest in Indus Towers, makes it one of the largest tower infrastructure providers in the country with presence in all 22 telecom circles. The Company has been the industry pioneer in adopting green energy initiatives for its operations. The business of Bharti Infratel and Indus is to acquire, build, own operate tower and related infrastructure. Bharti Infratel and Indus currently provide access to their towers primarily to wireless telecommunications service providers on a shared basis, under long term contracts Bharti Infratel’s and Indus’ three largest customer Bharti Airtel (together with Bharti Hexacom), Vodafone India and Idea Cellular, which are the three leading wireless telecommunications service provider in India by wireless revenue. The company has a nationwide presence with operations in all 22 telecommunications Circles in India, with Bharti and Indus having operations in 4 overlapping circles. As on September 30, 2015, Bharti Infratel owned and operated 37,801 towers with 78,949 co-locations in 11 telecommunications Circles while Indus operated 1,17,579 towers with 2,61,159 co-locations in 15 telecommunications Circles. With Bharti Infratel’s towers and Bharti Infratel’s 42% interest in Indus, it has an economic interest in the equivalent of 87,184 towers and 188,636 co-locations in India as of September 30, 2015.We expect that the company surplus scenario is likely to continue for the next two to three years, will keep its growth story in the coming quarters also. Hence, we recommend ‘BUY’ in this particular scrip with a target price of Rs. 450.00 for Medium to Long term investment. For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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