Bharti Airtel's margins are likely to improve: Girish Pai, Head Of Research, Centrum Broking

Girish Pai, Head Of Research, Centrum Broking, in a chat with ET Now, gives his views on Bharti Airtel


One investment idea from you where you are convinced that it makes sense to be a buyer?

I have been recommending Bharti Airtel and I continue to recommend that because in the telecom space the early incumbents are probably gaining greater traction in terms of market share. The fact that Bharti Airtel has probably got a fairly large earnings lever and the fact that they have got an exposure to Africa where margins could potentially improve fairly dramatically from about 26% levels to probably as much as 35% to 40% level in the next couple of years that is one to be looked at plus the government has been making noises in terms of changing the M&A rules which could lead to a greater level of consolidation in the industry which could give the players more pricing power. This could lead to the earnings coming in the domestic front a little better than what market is currently expecting but that is probably a couple of years down the road so all in all I think Bharti Airtel looks to me a stock which has got lot of triggers ahead of it.