Neutral on Bharti Infratel, target price Rs 165: Citigroup

Citigroup has maintained neutral rating on Bharti Infratel and cut target price to Rs 165 from Rs 260. The stock ended up 3.35 per cent at Rs 157.20 on Monday even as the BSE Sensex closed 415.86 points up (+1.33 per cent) at 31,743.08.

Bharti Infratel Ltd., incorporated in 2006, has a market cap of Rs 29075.84 crore.

Investment Rationale


Attractive dividend yield and a healthy balance sheet provide support, though near-term uncertainties persist pertaining to further potential exits by Vodafone Idea, said Citi.

Financials

Bharti Infratel's key products/revenue segments include Income from Infrastructure Activity which contributed Rs 6821.70 crore to sales value (100.00 per cent of total sales)for the year ending March 31, 2019.

For the quarter ended March 31, 2020, the company reported consolidated sales of Rs 1682.10 crore, up 0.89 per cent from last quarter sales of Rs 1667.20 crore and up 0.38 per cent from last year same quarter sales of Rs 1675.80 crore. The company reported net profit after tax of Rs 405.00 crore in the latest quarter.

Promoter/FII Holdings

Promoters held 53.51 per cent stake in the company as of the fourth quarter ending March 31, 2020, while FIIs held 42.03 per cent, DIIs 3.59 per cent and public & others 0.87 per cent.