Bharti Airtel (BUY): The great African blindspot - Ambit

Whilst Bharti's 1QFY14 performance in the India business exceeded ours and consensus expectations, its Africa business continued to disappoint despite promises of a seasonal turnaround. Revenue metrics in the Africa business have seemingly declined, but one-off events (political unrest) and short-term regulation problems are likely to clear up over the next few quarters. Moreover, benefits from industry consolidation in India may continue, further limiting the downside risk to earnings. We maintain our BUY stance on Bharti with a target price of Rs360, though upgrades to this is likely given the improved near term visibility on benefits from consolidation in India.

Source : Equity Bulls

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