Thursday, July 21, 2011

Bharti Airtel - Buy

Bharti Airtel is a leading Indian telecommunication service provider with 21.64 per cent market share. It has more than 127.5 million subscribers in India -- the world's second largest wireless market by users. It has three strategic business units namely Mobile Services, Telemedia Services and Enterprise Data Services.

The company provides services to all 23 telecom circles of India. Bharti's mobile network covers approximately 81 per cent of the country's population. Bharti Airtel has been the leader in market share (on subscriber base) as well as on turnover basis. Also, it generates the maximum Average Revenue Per User.

Bharti vs the telecom industry:

Outperformed the industry's net profit margin in the last 3 years.
Where the industry profit margin has shown a declining trend since 2007, Bharti has mantained a stable net profit margin
Inspite of intense competition, it mantained 20 per cent+ net profit margin in the last 8 quarters
Bharti Airtel has proved itself in the past by performing better than all its peers. It is well-poised for growth in the long term due to the growing telecom market, the competitive advantage of its leadership position and opportunities available in the 3G space.
Competition is giving it a bumpy ride right now, but it is well-armed to fight and remain successful.

Time Span Price Change %Change
Today 395.20 -0.05 -0.01
Week 394.05 1.20 0.30
Month 389.30 5.95 1.52
Three Months 376.60 18.65 4.95
Six Months 336.60 58.65 17.42
One Year 297.00 98.25 33.08

The has been performing well during the last 6 months and is likely to post decent returns. Long Term investors should buy the scrip around 350 levels for a target price of 425 levels

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Ingenious Investor
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