Bharti will do extremely well in long term: Fortress Financial Services

Bharti has got a drubbing, it has gone down to the 270 mark. Would you start buying the counter now?

No, not yet. There are two reasons. Overall market as I said earlier, I am not very comfortable to buy now. Secondly specific to Bharti, one aspect is long term perspective. Whatever developments have happened of the acquisitions are great for Bharti but whenever there is a large acquisition, there is a spending of cash and there is additional borrowing. Lot of uncertainty with regard to new capital expenditure comes in.

So all these things put a strain on the valuation and in short term, the people who are already invested in the company, take a little beating. So very clearly on Bharti, what I believe is that short term, there are further corrections expected, thanks to the fundamentals as well as on the overall market. Long term, it will do extremely well because Africa is like what we were like 10-15 years back and demand side is going to spurt up. So it is an enterprise. For entrepreneur like Mr Mittal, it is a great thing to happen but for the investors who are normal investors, it is sometime of uncertainty.