The brokerage forecasts 15-24 percent CAGR over FY15-18. Bharti Infratel has been gaining tenancy market share and the pace of market-share gain has accelerated.
Shares of Bharti Infratel rose 12 percent intraday. Temasek has sold 1.737 cr shares of the telecome company at Rs 380.04 per share on Friday. As of June 2015, Temasek held 1.58 percent stake in Bharti Infratel which stands at 0.66 percent now.
Meanwhile CLSA reiterates buy rating on the stock with a target price of Rs 550 per share. It states that not only does Bharti Infratel offer growth, a strong balance sheet and 3 percent dividend yield but also the tower industry in India is consolidating with several companies in excessive leverage. Adding to that, Bharti Infratel’s planned merger and acqusition, especially to buy Idea Cellular and Vodafone’s 20000 towers, would be synergistic and add to growth, says CLSA.
The brokerage forecasts 15-24 percent CAGR over FY15-18. “Bharti Infratel has been gaining tenancy market share and the pace of market-share gain has accelerated. In the addressable markets,these tower companies’ share of tenancy is at 28 percent. Bharti Infratel’s anchor tenants, which account for 56 percent of industry BTS, have increased share by 6 ppt in the last three years and are still increasing capex,” it says in a note.
At 11:25 hrs Bharti Infratel was quoting at Rs 422.40, up Rs 32.75, or 8.40 percent on the BSE.
Posted by Nasrin Sultana