ICICI Direct recommended Hold rating on Bharti Infratel with a target price of Rs 270 in its research report dated October 23, 2019.
The company, however, reported a marginal dip in revenue to Rs 3,638 crore during the September quarter from Rs 3,668 crore in the year-ago period.
ICICI Direct recommended hold rating on Bharti Infratel with a target price of Rs 275 in its research report dated July 26, 2019.
The combination, which was announced in April last year, is slated to create the largest mobile tower operator in the world outside China, with over 163,000 towers operating across all 22 telecom service areas in India.
ICICI Direct also said Infratel's reported revenues (without the impact of IndAS 116) at Rs 3,629.7 crore were better than its estimate of Rs 3,558.3 crore
The top gainers from NSE include Cipla, Bharti Infratel, IndusInd Bank, Bajaj Auto and UltraTech Cement while the top losers are Coal India, Tata Motors, Indian Oil Corporation, Mahindra & Mahindra and JSW Steel.
The company had recorded a net profit of Rs 638 crore in the same period a year ago.
Sale of a significant stake in its tower assets would help in further debt reduction, the ratings agency added.
Net Sales are expected to decrease by 1.2 percent Q-o-Q (down 3.6 percent Y-o-Y) to Rs. 3,598.3 crore, according to ICICI Direct.
Morgan Stanley said industry's structure has improved and three operators now dominate telecom sector
The proposed merger, which will create a mega tower company in India, will also require approval from the Telecom Department.
The top Nifty gainers include NTPC, Tata Motors, Bharti Airtel, Bharti Infratel and ICICI Bank while TCS, Britannia Industries, Tech Mahindra, HCL Tech and Wipro are the top losers.
At the closing bell, Bharti Infratel was quoting Rs 270.95, down 10.33 percent from the previous closing price on the BSE.
Rawat, who will continue to lead the company till the merger, has intended to continue with Bharti group in a senior role, said Bharti Infratel in a BSE filing.
The year 2018-19 saw major consolidation in the Indian telecom industry with four operators ceasing to exist either on account of mergers or outright shut down of operations, Bharti Infratel Chairman Akhil Gupta said in a statement.
Motilal Oswal expects consolidated revenue to grow 3 percent quarter-on-quarter led by healthy rental and energy revenue growth.
The Sunil Bharti Mittal-led telecom services firm had earlier said it is parking its stake in Nettle Infrastructure, a wholly owned subsidiary of the company, as it plans to monetise stake in Bharti Infratel.
The breadth of the market favoured the advances with 947 stocks advancing and 760 declining while 379 remained unchanged. On the BSE, 1295 stocks advanced, 1133 declined and 160 remained unchanged.
Infratel has formed a 100 percent bullish pole with bullish ABC.
Airtel's unit, Nettle Infrastructure Investments Ltd, will buy a 32 percent stake in Bharti Infratel, the telecom tower company said.