Bharti Infratel - Passive play on aggressive data rollout - Standard Chartered

- We initiate coverage on Bharti Infratel (BIL) with an Outperform rating and PT of INR 240. Potential releveraging and one-off dividends provide upside triggers.

- BIL offers investors a low risk option to gain exposure to the ongoing wave of data network rollout.

- Robust free cash generation capacity and potential for higher dividends will lead to a re-rating notwithstanding the moderate EBITDA CAGR (~9% over FY12-15E).

- Strong parentage provides superior visibility to tenancy even as stability in telecom tariffs might alleviate any pricing pressure on rentals.

Source : Equity Bulls

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