My View On Bharti Airtel

About The Company

One of the biggest player with largest network coverage and strong customer base and vast growing network in telecom sector. It is called as the undisputed leader of its field. The stock has been fancied much now days in the capital market too.

About The Financials

The compnay has posted results for Quarter 3 , Its overall customer base as at 31^st Dec 2008 was at 8.83 crore. And during Q3FY09 it made the highest ever-net addition of 82.82 lakh customers in a single quarter. Clearly, telecom is one sector which is showing no signs of a slowdown. Its market share now stands at 24.7% of all India wireless subscribers at 24.7%.

For Q3FY09, the company posted a total Revenues of Rs. 9,633 crore (up 38% Y-o-Y). Its EBITDA stood at Rs. 3,945 crore (up 33% Y-o-Y). Its cash Profit was at Rs. 3,755 crore (up 30% Y-o-Y). Its net profit for the quarter rose 38.34% at Rs 1,976.41 crore.

Negative Cues

1. CEO and Jt MD Manoj Kohli of Bharti Airtel sold off his entire holding of 1.23 lakh shares for over Rs 7.2 crore, there was a major sell off on the counter.

2. TRAI would be cutting the domestic termination charges. Telecom analysts feel that this would result in cheaper calls for users but is expected to impact the large GSM players.

Positive Cues

1. Bharti’s strength remains its reach into remotest of the villages, which now stands at over 4 lakh villages.

2. It launched its services in Sri Lanka and in a few years, hopes to become a market leader there too.

About The Stock

One of the best option in the telecom pack for medium to long term view. In panic this stock could be worthy buying.

Disclaimer : I do not have any personal holding in this stock.