The Hindu Business Line : Bharti Tele remains investors' favourite

The stock, which declined by 5.2 per cent on Wednesday after a smart 5-session run, still remains a favourite of a section of institutional brokers and day traders.

According to market sources, a number of broking houses are reportedly warehousing for a select group of foreign investors. Dealers and analysts say that the company is seen as one of biggest beneficiaries of the telecom policy changes. "Moreover, certain market players are ready to add premium to the stock in anticipation of a projected growth in the next 6 to 8 quarters," a dealer at an institutional brokerage firm said.

The company, which has been reporting increase in its subscriber base, posted a PAT of Rs 161.30 crore in the Q3 of the current fiscal against a net loss of Rs 7.07 crore in the comparable quarter in the last fiscal. The company is understood to be planning debt restructuring, by which cost of the old loans would be reduced.

At today's closing price of Rs 140, the stock traded at 58.3 times its expected earnings per share of Rs 2.40 during 2003-04, Mr Gaurav Dua of Anagram Stockbroking pointed out.

Analysts said that Bharti was a medium to long-term call for both domestic investors as well as overseas ones. Incidentally, the combined foreign shareholding has already outnumbered that of the promoters. "Appetite for this stock among the FIIs is seen to be persisting for some more time," Mr Ajay Jaiswal of Lohia Securities felt.

Trading pattern in the counter in the last few days suggest that even though the delivery percentage has been showing signs of growth, substantial interest from day traders also contributed to the hyper-activity in the counter.

The stock had recorded its all-time high closing at Rs 148 on Tuesday, with a record volume of over 1.78 crore shares on the BSE and the NSE. The BSE figures suggest that the deliveries have gone up from level below 30 per cent of total traded volume to 40 per cent in the last three sessions.

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