Bharti Airtel is India’s leading integrated telecom company and it has been a pioneering force in the telecom sector and today enjoys a strong nationwide presence. It has been at the forefront of the telecom revolution and has transformed the telecom sector with its world class services built on leading edge technologies. Recently, Bharti has entered into the retail. It has also entered into a joint venture with Wal- Mart for setting up the supply chain, logistics and cash and carry to support the rapidly growing retail market in India Bharti has received incremental spectrum in 8 circles and has applied for additional spectrum in seven more circles.

With the event of allocations, there will be a positive impact on the growth factor and it would also result in better capex efficiency. Bharti’s 1QFY09 earnings grew 34% YOY and 9.3% Q.Q to Rs.20.25B ( verses estimation of Rs. 18.8B). Revenues grew 43.7% YOY and 8.5% Q.Q to Rs.84.8B, which is 1.5% ahead of the estimated target. It has been reported that the net derivative and forex loss of Rs. 1.48 B, during the quarter EBITDA was in lime at Rs. 35.2B. The stock is trading at an EV/EB ITDA of 10.3X FY09 & 8.2X FY10 and P/E of 17.2X FY09 and 14.5X FY10. The tower segment is expected to be a key margin driver for Bharti. Also, Bharti is likely to maintain its leadership in the mobility markets, while it continues to invest in an aggressive manner.