Prefer Bharti Airtel over Idea Cellular: Harendra Kumar

Harendra Kumar of Elara Capital told CNBC-TV18, "There is a big divide on whether to trade Idea Cellular or Bharti Airtel at this point of time. Beyond the revenue per minute (RPM) numbers and the data pay that is coming up, it is obviously the spectrum auctions and how it is going to impact the balance sheet. To that extent Bharti is far better play than Idea because of its limited circles in which it has to renew auctions and it has a larger balance sheet."

"In terms of the spectrum auction the impact on its balance sheet is far lesser vis-à-vis Idea. Whereas the street in our view is converse towards trading Idea because they believe it is more domestic oriented and there is a more fundamental improvement. This is a structural change, Bharti is also looking to improve its number and it is in line though it is not surprise. Over the medium-term for the next six months we would tend to stick with Bharti over Idea," he added.