By Aditya Raghunath
Investing.com -- A report by foreign brokerage Credit Suisse (SIX: CSGN ) has indicated that the fortunes of Bharti Airtel Ltd. (NS: BRTI ) and Vodafone Idea Ltd (NS: VODA ) couldn’t be more divergent.
The report says that Airtel will be “well-placed”, in either scenario, a two-private operator system or a three-private player field. “Under a two-private-operator scenario, we expect Airtel's subscriber market share to reach 40% and ARPU (average revenue per user) to increase to Rs 200...," it said.
"We believe the company will also emerge as one of the key beneficiaries of the relief measures being discussed," it added.
It added that investors are re-evaluating Bharti Airtel and Indus Towers Ltd (NS: INUS ).
It said, “In the event of BSNL taking over or government control [of Vodafone Idea], we forecast a valuation of Rs 840 per share for Airtel and Rs 190 per share for Indus. For RIL, a two-player scenario can potentially add 10% to its market price, while the Scenario 2 can add five percent." Bharti Airtel stock is trading at Rs 621 as of this report.
Vodafone Idea, on the other hand, will continue to remain under pressure. "Our analysis of VIL's cash flows suggests its situation will remain challenging even after the relief measures. VIL needs meaningful capital infusion (with long gestation period) to become competitive," said the report.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
nicely predictedLike 4