Bharti Airtel:Fine Tuning Its Africa Operations--Blw 405-400 May Fall To 390-370 Zone, Where It Could Find Good Buying Support For A TGT Of 455

Technically, Bharti (CMP:410) has immediate support of 405-400 zone and sustain below that it could fall to 390-380-370 area. Consecutive closing below 370*, it may further fall to 359-350-338* & 326-317-310-290-279  territory in the worst bear case scenario.

On the upside, sustain above 405, Bharti may immediately target 412-419-426. Only consecutive closing above 426-430, it may scale 438-443-455 in near term. In the mid to long term, sustaining above 455, Bharti could target 465-475-485 & 500-510-535 & 565-600 under bullish case scenario (FY:16-18).

Bottom Line:Technical Trading Levels (Positional)

	SL</>5	FROM SLR
		BHARTI	CMP	410
			T1	T2	T3	T4	T5	T6	T7	SLR
Strong >	405		412-419	426-430*	438-443	452-455*	465-475	485-490	500-535	<400
Weak <	400		390	380	370*	359-350	338*	326	317-279	>405

Bharti is presently deleveraging (selling & exiting) its unprofitable African business except better markets like in Kenya and Nigeria to reduce its huge balance sheet debt of around Rs.62200 Cr. The company will concentrate more now on India (specially in 3G/4G) as our country has now better telecom regulatory environment, comparatively less competition than few years ago due to growing consolidation & huge cost of operations (where only players having deep pocket could survive in future) and stable telecom tariff. Also there will be huge opportunity in data market as India is now world's fastest growing smart phone market and also there will be "Digital India" initiatives. Now-a-days, people are increasingly talking less over mobile and OTT IM like WA is the preferred way for seamless communications, which is consuming more data. 

But some headwinds might come from R-JIO in terms of tariff & market share etc in future.

As par BG metrics, current median valuation of Bharti Airtel may be around 445 and its projected fair valuation might be around 475-530-600 (FY:16-18 On standalone basis).

SCRIP	EPS(TTM)	BV(Act)	P/E(AVG)	LONG TERM	SHORT TERM	MEDIAN VALUE	200-DEMA	10-DEMA
BHARTIARTL	33.02	166.93	14.29	430.46	449.68	440.07	392.7	428.54

BHARTIARTL

38.05

190.3

14.29

462.09

482.71

472.40

392.7

428.54

BHARTIARTL

47.5

217

14.29

516.29

539.33

527.81

392.7

428.54

BHARTIARTL

59.5

250

14.29

577.84

603.63

590.73

392.7

428.54

To be continued for some more useful inputs----