Motilal Oswal - MOSL: Morning India (8/May/19): 1. Bharti Airtel (India business stages a comeback); 2. Wipro; 3. Vedanta; 4. Petronet LNG; 5. A B B; 6. Sanofi India; 7. Godrej Agrovet; 8. Mahindra CIE

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Motilal Oswal

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EUR 120.00 For Business Accounts Only

MOSL: Morning India (8/May/19): 1. Bharti Airtel (India business stages a comeback); 2. Wipro; 3. Vedanta; 4. Petronet LNG; 5. A B B; 6. Sanofi India; 7. Godrej Agrovet; 8. Mahindra CIE

MOrning India (8/May/19): 1. Bharti Airtel (India business stages a comeback); 2. Wipro; 3. Vedanta; 4. Petronet LNG; 5. A B B; 6. Sanofi India; 7. Godrej Agrovet; 8. Mahindra CIE

Today’s top research idea

Bharti Airtel: India business stages a comeback

BHARTI bucked the competition-driven downtrend of the past several quarters with a strong fourth-quarter performance. Consol. EBITDA grew by a robust 7% QoQ to INR66b, with the margin expanding 150bp QoQ to 32.2%, led by a turnaround in the India wireless business margin (+410bp QoQ). However, adj. net loss widened to INR12b (v/s INR10.4b QoQ)
India wireless revenue grew at healthy 4% QoQ. In USD terms, Africa revenue stood flat QoQ, but a sharp decline in opex facilitated healthy 6% QoQ EBITDA growth
In our view, BHARTI has multiple moving levers in place - (a) a rebound in India wireless business, (b) fund raising plans and (c) peaking out of capex - which should help prune the ballooned net debt and make it self-sufficient.
Incrementally, the Africa IPO and the Bharti Infratel stake sale could drive additional deleveraging. The stock is attractively priced at 7x FY21E EBITDA. Maintain Buy with an SOTP-based target price of INR410.

Piping hot news

Essar Steel shareholder seeks ArcelorMittal's disqualification over ties with loan defaulting firms

In another twist to the Essar Steel insolvency proceedings, the Ruia-owned Essar Steel Asia Holdings (ESAH) has urged a court of appeals dealing with bankruptcies to reject a Rs 42,000-crore ArcelorMittal bid for the maker of the primary infrastructure alloy. ESAH told the National Company Law Appellate Tribunal (NCLAT) that billionaire Lakshmi Mittal allegedly hid his association with defaulting firms run by his brothers Pramod and Vinod.

08/05/2019 1 EN

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MOSL: Morning India (8/May/19): 1. Bharti Airtel (India business stages a comeback); 2. Wipro; 3. Vedanta; 4. Petronet LNG; 5. A B B; 6. Sanofi India; 7. Godrej Agrovet; 8. Mahindra CIE

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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