After taking hits on increased competition and overseas acuqisition airtel is available at better valuations. I won't call it a bargain but better chance and lower risk for conservative investor . Technically strong is hitting third bottom and a solid bases is formed. An upward journey seems to be next in order.
Stock dropped Rs 29 to close at 285. That's a kill to investor and small shareholders. But business decision are not made for short term stock price in mind. Business take decision to create value in long term. Is this going to be good or bad still need to be decided. But I am still away from telecom stocks.
Airtel Market cap is 108,000 crore or almost 25 B dollars. For this stock to double market cap needs to go 50 B. I don't think that's happening in next 2 years.
Bharati is offering $10B for Zain Telecom's Africa business. Recently Bharati tried to go with MTN that was unsuccessful. Zain has over 41 Million customers in Africa. Growing at rate fo 24% africa is becoming next big market for Telecom.
How can this affect Bharati in short and long horizon. I think Bharati might take some decision which can negatively affect it's profitability and stress balance sheet in short term. Long term nature of these deals will be known once more details are out. I am staying out of Telecom and Bharati in particular.
After coming under pressure for last few sessions Airtel got back on short covering. This specially important as overall market lost ground and closed with losses of more than 200 points on sensex.
Just found out from bloomberg thaat Bharati Airtel reached a $24 billion preliminary accord to buy each other’s
shares, the first step in a planned merger.Bharati went one step further by sweetening the deal to buy 49 percent of MTN by
raising the cash portion of .MTN and its
shareholders are set to buy 33 percent of Bharti for about $10
billion, the people said.
Along with Bharati airtel is swinging . Is time to trade this stock ? I am looking for a safe bet.