Bharti Airtel - Recommendation for BUY

One can 'buy' on the stock for a target price of Rs 1,130, an upside of 22.5 per cent. Bharti, with over 24 per cent market share, is a leader in the Indian telecom space. On average, the company is adding two million subscribers every month and currently has a subscriber base of 60 million. Bharti Airtel is likely to be a key beneficiary of the removal of the access deficit charge, to the extent of Rs 180-200 crore. The company is likely to pass on the benefits accruing from the ADC removal to the end consumers by way of reduced tariffs or similar benefits. At the market price the stock trades at 25.6x FY2008 and 21.2x FY2009 estimated earnings.

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