Monday 3 November 2008

Buy Bharti Airtel, target of Rs 1020: Motilal Oswal

Motilal Oswal has maintained its buy rating on Bharti Airtel with a target of Rs 1020 in its November 1, 2008 research report. "Bharti’s 2QFY09 earnings grew 27% YoY and 1% QoQ to Rs 20.5 billion. Revenues grew 42% YoY and 6.3% QoQ to Rs 90.2 billion. We are reducing our estimates to reflect MTM derivative loss and lower EBITDA margins for 2QFY09. We revise downward our FY09 and FY10 revenue estimates by 1%, EBITDA estimates by 1.5-2% and earnings by 4%. We now expect an EPS of Rs 45.7 in FY09 and Rs 55 in FY10. The stock is trading at an EV/EBITDA of 8.3x FY09 & 6.5x FY10 and P/E of 14.2x FY09 and 11.8x FY10. Maintain Buy and our target of Rs 1,020," says Motilal Oswal's research report.

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Source: Moneycontrol

Posted by Harsh at 07:09

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