Bharti Airtel stock would be under pressure for some time: Bonanza Portfolio Ltd.

ET NOW spoke with Avinash Gupta, AVP Research Equity, Bonanza Portfolio Ltd. regarding Bharti's take over of Zain telecom's african assets. Avinash indicates the global ambition may put Bharti stocks under pressure for sometime.

Bharti is looking at a $10.7 billion deal taking over the African assets of Zain Telecom. This will obviously put some kind of pressure on Bharti's books. How do you react to this development?

You are absolutely right. What we hear is that Zain is at a kind of breakeven kind of a scenario and, therefore, that fair amount of money that Bharti will have to put in for this will be a pressure on the bottom-line of the Bharti but the plus point of this is that Bharti has said that they have global ambitions and they want to have significant presence in the emerging markets, this is a step in that direction but I mean to turn it around and make it clearly profitable to the level that Bharti has, profitability that Bharti has, it will take quite some time, so for sometime to come, the stock of Bharti Airtel would be under pressure.

Patni is close to clinching two large contracts worth up to $500 million and there are a lot of mixed calls coming in on Patni buys with targets raising from 525 to 580 but sells also coming in with a low of as much as 425. Your reaction on Patni ?

Patni, we have not been tracking closely but the stock has been in the news because there was a talk of the promoters selling their stake and some issues there but beyond that, I have not been tracking this stock closely.