RECOMMENDATION - Buy

SMC GLOBAL INDIA

J.Siddharth
Equity research intern

BHARTI AIRTEL Company LTD

TECHNICAL ANALYSISOver a period of time the MACD line has been fluctuating frequently unable to give a clear picture
on the call, but the Bollinger band has clearly indicated about 5times there has been overvaluation
of the stock in the year. At the current scenario the MACD line and the volume bar indicate sell call
for the share but for the long term investors the call will be buy, as indicated by the Bollinger band
there has been undervaluation of share price , hence it can be purchased now and the trends show
rise in prices in future and sold thereafter.
FINANCIAL ANALYSIS-

Over the period of time Bharti Airtel has gained a significant share in the
market. Therefore it has the ability to take risk and sustain its uncertainties. The auditors report
clearly states that the company has provided the right information in regards to all its financials, but
the only risky gesture is the legal liability related to one time spectrum fee which may arise.
The profitability ratios compared to previous years have improved significantly the net profit ratio
has increased by 2.11%, the operating profits have also increased by 3%, the dividend per share has
also increased .80 . Mainly the management efficiency ratios are intact and the earning per share
has tremendously increased by 3.20 rupees.
CONCLUSIONLooking at the financial and technical analysis it can be deciphered that the bharti Airtel stock has
great potential though at the current scenario the technical indicators indicate on short but the
trends upward movement in the future which is supported by the financials of the company which is
doing a great job. Hence its advised to buy the stock at this current undervalued price and hold till
the price rises.