Bharti Airtel gets a ‘buy’ from Kim Eng

Kim Eng Securities has assigned a ‘buy’ rating on Bharti Airtel. According to its analysts, Bharti’s high investment phase is almost over. Over the past three years, Bharti invested Rs 1 trillion to establish operations in Africa and acquire a 3G licence in India.

This phase of high capex led to a decline in its earnings, says a Kim Eng report. “We believe that increase in free cash flows to Rs 4,000 crore for FY12 from negative cash flows in FY11 confirms that payback has started,” the report said. Bharti shares ended 4.2% lower at Rs 281.95 on BSE.