Bharti Infratel listed it's shares on BSE and NSE on 28-Dec-2012 and on the same day, the stock closed below 192 - 28% below the issue price.
What is the future of Bharti Infratel?
My belief is, Bharti Infratel is going to touch a low of around 160 - 170 in first quarter of 2013 calendar year. People will wait for 2-3 earning announcements before taking a call on the stock. But I would recommend buying Bharti Infratel if it goes down to 170 or below. The reason is, Bharti Infratel is already established player in field of Telecommunication Tower Business and it has very good user base. It has 34000+ towers and one of subsidiary - Indus Towers is also going to be listed on stock exchange in coming years. Looking at the figures published during IPO, Bharti is going to post an EPS of 20 during fiscal year 13-14. Hence, taking 6-12 months view, if one buys the stock at 170, an appreciation of 30 Rs per share is not difficult to achieve.
So, go for Bharti Infratel at 170 level and start accumulating the stock. The IPO was a flow show of 2012, but the stock may not be a flow show for 2013.
Happy Investing!
Disclaimer: This blog only expresses my views and talks about my analysis of the stocks. Please consult your financial adviser before buying or selling stocks. Stocks are risky investment instruments.
My advise to investors is to start selling Bharti Infratel in small quantities. This stock will correct upto 185 when market starts going down again in next 2-3 weeks.
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