The mystery known as Bharti Airtel

Oct 13, 2010

I understand that this article is for free viewing of Equitymaster Website. By providing contrasting views against the advice given to the paid subscribers, Equitymaster is confusing its paid subscribers. Please clarify your stand.

Any business has a saturation point. Indian telecom consumers prefer low-cost per call attitude. This means earning per customer will not help telecom bottom-line. Airtel has to explore other emerging markets (like Singapore Telecom did in India through Airtel) and expand to make additional revenue. Increasing customer base is the only hope in India. 3G wont bring in much money because it is only for tech-savvy upper-middle which is a small crowd. This logic applies to all telecom players - see BSNL 3G they are not going anywhere inspite of 1st mover advantage.

guys,
pls be reasonable.this is an article is not in the premium or paid section of the website. You cant expect EM to give advise on this stock in this article. That benefit would be available to only the paid subscribers.
EM has always provided timely updates and alerts on the stocks they cover. Research Pro subscribers can see what EM has to say on Bharti. Recently when there was some confusion on the Hero Honda stake sale EM immediately came out with their alert. So guys relax and have faith in EM. Atleast I do.

The entire telecom will witness a slow down as a result of too much of players/ operators coming in. Investing high on infrastructure and licence fees and cut throat competition for rate cut will lead every operator struggling for survival.... the next phase will be of the survival of the fittest.... Bharti Airtel will be surely one of them . The next phase will be of mergers and acquisitions and quit by the operators .... then only the remainants will take a long breath.

That's why they say "invest at your own risk" with a 1/2 page disclaimer. All the more reason on why to do your own research and then feel confident in investing.

I have a huge investment in this stock after EM's recommendation. I need to know whether I should Hold or Sell.

The article is confusing !Should we hold or sell ?

What was the objective of the article besides confusing the readers ? Bharti's Zain acquisition needs to be taken into account if a raodma for next decade is to be drawn. Also in the near future 3G and number portability would happen. As leader, Bharti is expected gain out of these events. Would appreciate a better quality assessment from EquityMaster

After reading your article, Bharti remains a mystery.
My opinion of Bharti is that it is a fantastic company, run by some of the best and experienced telecom businessmen. They have succeeded in the Indian environment, and will not just continue on this path here, but will also translate this experience to new geographies - of Asia and Africa.
Hyper-competition in India has resulted in a temporary blip in performance of the industry. This is created by poor regulation and governmental interference.
Watch how these seasoned folks sustain through these times, and return to the winning, profitable ways.
As an investor, I would say, this 1-2 year period is the opportunity to buy, for outsized returns over the next decade.

Please clarify your stand on Bharti. Should subscribers sell or hold? This article is very confusing!