Sell Bharti Infratel; target of Rs 310: HDFC Securities

The four stocks they exited are Macpower CNC Machines, NDR Auto Components, Novartis India and RSWM, according to Dolat Capital.

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26 Aug, 2025 12:21

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HDFC Securities' research report on Bharti Infratel

Bharti Infratel’s (BHIN) share price has declined from a peak of Rs 480 to Rs 373 (22%) in last two months. Despite recent decline, we reiterate our Sell rating with revised TP of Rs 310 (vs. Rs 387). Our TP is based on 20x Dec-19E EPS (Rs 356) for business as usual (vs. 24x earlier) less impact of Rs 60/sh from Voda-Idea merger (vs. Rs 39/sh earlier) and likely acquisition of Voda-Idea stake in Indus at EV of Rs 5mn/tower (+Rs 15/sh). Key reason for our de-rating is instant loss of tenancies on merger of Voda-Idea and impact of RCom and Aircel businesses’ scaling down. This would push back BHIN’s EBITDA and earnings by couple of years.

Outlook
However, these events are probable and s.t. valuations; while loss of tenancies certainly warrants de-rating. A higher price for Indus acquisition would be negative. A lower price would be sentimentally negative as BHIN holds 42% in Indus.
For all recommendations report, click here

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