The Hindu Business Line : Bharti Tele-ventures: Room for growth

Analysts have taken a positive view on the company's network expansion to Assam and the Northeast. This is expected to make the company the largest operator in the cellular space. The company claims to have over 11 million subscribers.

The scrip is currently trading at 16 times its price earnings and analysts see room for further growth. "The scrip usually gets compared to IT companies as there are no other peers against who it can be compared on a like-to-like basis. With this disparity in view, the scrip is fairly undervalued," said an IT and telecom analyst with an institutional broking house.

The prospects of the company are further buoyed with the problems of ownership plaguing its rival - Reliance Infocomm. With news reports suggesting that leadership of Reliance Infocomm would be transferred to Mr Anil Ambani and that top executives of the company have been given the option to stay under the new management or move to Reliance Industries Ltd, analysts suggest that the efforts of the company would be diffused in the near to medium term. "Reliance Infocomm is not expected to make any drastic moves, especially in the pricing side. This will augur well for Bharti," an analyst predicted.

View on the sector, overall, is also quite bullish. The growth in mobile telephony is expected to enable cellular phones to overtake fixed line phones. Margins are expected to be maintained and even if the company is forced to cut tariffs, analysts do not anticipate any margin pressure.

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