Buy Bharti Infratel; target of Rs 474: Axis Securities

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26 Aug, 2025 12:21

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Axis Securities research report on Bharti InfratelBhartiInfratel(BHIN) recorded consolidated tenancy additions of 3,114 (Q3FY16: 3,285). Tenancy growth was impacted by one-off exits of ~500. Monthly rental was steady at Rs 34,671 (revenue per sharing operator, up 1.4% QoQ), leading to a 2.3% QoQ growth in revenue. EBITDA at Rs 14.4 bn was up 7% QoQ with energy margin rising to 9.7% (Q3FY16:4.8%). Underlying tenancies growth encouraging: Exit of peripheral players exerted a drag on tenancy additions; however,accelerated data rollouts by key tenants improved closing tenancy to 2.2x (Q3FY16: 2.18x).Further, Indus Towers’ sharing revenue per operator grew 1.5% QoQ. This would lead to full tenancies, as data consumption grows.We expect 0.4x incremental tenancy over FY16-18 (FY14-16: 0.19x). We expect FY16-18 revenue CAGR of ~10%. Steady energy margins and operating efficiencies would lead to 11% CAGR in EBITDA for FY16-18E. We have assumed the impact of the buyback at a buying price of Rs 450 per share. Our DCF-based TP stands at Rs 474 (Rs 452 earlier), implying an upside of 26%. The stock trades at 25x FY17E and 22x FY18E EPS of Rs 14.8 and Rs 16.8. Maintain BUY. 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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