Religare's report on Bharti InfratelBHIN reported soft Q2 revenues up merely 3.7% YoY to Rs 30.4bn on a 5% YoY increase in tenancies. Consolidated EBITDA margins came in slightly below expectations at 43.1%, flat QoQ, dragged down by lower energy margins. Management commentary indicates that a pick-up in data growth would lead to acceleration in tenancy addition. While valuations are expensive, we continue to like BHIN for its strong market position, improving return profile and healthy balance sheet. Maintain BUY.View: BHIN remains a unique data penetration play, and we expect it to deliver 9.6%/18.3% EBITDA/EPS CAGR over FY15-FY17. We however adjust down our revenue estimates for slower tenancy addition, and EBITDA margins for lower energy margins. This leads us to cut our FY17/FY18 EBITDA by 5.1%/5.9% and revise down our Sep’16 DCF-based TP to Rs 525 (Rs 550 earlier). Retain BUY, says Religare research report.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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