Bharti Airtel’s stock dips nearly 4% in intra-day trade

NEW DELHI: Bharti Airtel’s stock slumped nearly 4% in intra-day trade on Tuesday, a day after it announced investments of Rs 60,000 crore over the next three years, as investors fretted over the drain on finances ahead of a likely bruising tariff war post Reliance Jio Infocomm’s entry. “Project Leap is a 40% step up in the annual capex run-rate (in rupee terms).

While in line with our worries, the surprise for markets could come from not only the increased per year quantum, but also its sustenance over a three-year period,” Credit Suisse said in a note.

It saw the investment announcement by India’s No. 1 telco as a consequence of rising competitive concerns, with Reliance Jio Infocomm set to enter the sector, Sunil Tirumalai and Chunky Shah of Credit Suisse highlighted in the note. “The other symptoms of market share loss and margin compression could occur post the launch by RJio,” the note added.


It incorporate the higher India capex and cut the company’s earnings per share estimates for fiscal year ending March 2018 by 6%. It also cut the target price to Rs 285. Bharti Airtel shares ended 3.5% lower at `322.70 on the Bombay Stock Exchange, underperforming a flat broader market.