Buy Bharti Airtel among telecom stocks: Mehrab Irani

Mehrab Irani, Investment Manager, Tata Investment Corporation Ltd. in an interview with ET Now talks about Reliance Communications and Bharti Airtel.

R Comm is putting up its tower business on auction, and they might be looking at valuations anywhere to just about $3 billion. Keeping in mind the R Comm’s debt situation, do you believe that if at all this figure comes about, it will actually be a setback for R Comm because they would not be able to cover the entire debt?

Yes, I think so. R Comm has been facing a lot of pressure on its business, etc. It has not been able to grow as it had planned. ARPUs are under pressure, etc. If this deal happens at $3 billion as you said, I do not think that will bode well with the shareholders of R Comm. In the telecom, only Bharti can be looked at at current price and valuations. Any other stock is not giving any kind of confidence at this point of time.