Karvy Stock Broking has come out with a research report on Bharti Airtel. The research firm has upgraded the stock from under performer to market performer owing to the recent fall in the stock price and believes investors can start accumulating at current levels.
The report says, "Bharti Airtel offers USD 10.7 billion for African operations of Zain Telecom, in exclusive talks with Zain until March 25, 2010; a key strategic move that gives Bharti a strong presence in the high potential African telecom
market."
"The estimated size of the deal, if it goes through is around USD 10.7 bn enterprise value (EV). This values Zain International at an EV/EBITDA of 9.2x annualised 9MCY09 EBITDA, which is higher than Bharti's valuations of 7x FY10E EBITDA. On an EV/subscriber basis, Zain is valued at nearly double Bharti's current subscriber base at US$ 255. Thus, it is apparent that Bharti is paying a premium for the African assets of Zain," according to Karvy report.
No comments:
Post a Comment