Prospects of Bharti Airtel:

Many of us would be using Airtel as our mobile / Land line / Leased phone lines. Recently Bharti took over ZAIN Telecom in Africa. It did borrow huge money to aid its take over.

Many of us would have lost track of what happened / happens in Bharti after this take over deal. Here is a gist:
(1) After takeover Bharti is world's 5th largest telecom giant. It can no more be compared with BSNL or Reliance in India. Bharti is now an MNC.
(2) In the data given below, you would see that Bharti quotes at a fraction of price to other telecom companies world wide. Any international investor who wishes to invest in Top Telecom companies would naturally be interested in Bharti which is at a fraction of price (both on market price per share and valuations like PE etc). Hence chances of price appreciation in Bharti is likely to be far better.
(3) Moreover in the recent loans which bharti took for ZAIN takeover, the loans have been taken @ Rs.48 to 1 US$. Now at Rs.44 to an US$, Bharti has repaid a portion of the loan. This currency appreication of 10% has saved close to US$ 1 billion, reducing its burden.
(4) Apart from this Bharti has already made its foot print in Bangladesh, by buying Warid Telecom in Jan 2010. With a customer base of 2.9 million and a pan-Bangladeshi presence, Warid has been country's fourth-largest mobile operator.
(5) Last, many mobile / landline customers who left bharti in India in the intense price war competion, are returning back to Bharti realizing its qualities.

Hence with minimal domestic competition, bouncing back domestic demand, global foot print, relatively attractive stock price/valuation when compared to other global companies are all in favour of Bharti's domestic stock price.

Do click the images below to undertand these facts and make prudent investments.