Buy Bharti Airtel, target of Rs 990: Angel

Angel Broking has maintained its buy rating on Bharti Airtel with a target of Rs 990 in its October 31, 2008 research report. "Bharti Airtel recorded an impressive 42.3% yoy growth in Top-line in 2QFY2009 (6.3% qoq). Bharti launched its much-anticipated Direct to Home (DTH) services on October 7, 2008, marking its entry into the Media and Entertainment space and for which it plans to leverage the parent company’s 80 million subscriber base and brand name."

"Going ahead, we expect Bharti to record CAGR of 34.0% in Top-line while Bottom-line is estimated to grow at a CAGR of 27.9% over FY2008-10E. At the CMP, the stock is trading at 11.2x FY2010E EPS, 5.8x FY2010E EV/EBITDA and at an EV/subscriber of USD 162.6 on our FY2010E subscriber base. We maintain a Buy on the stock, with a revised Target Price of Rs 990 (Rs 1,105), including Rs 809 as the value of the core business (14x P/E multiple) and Rs 181 as the towerco valuation," says Angel Broking's research report.

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Source: Moneycontrol