Bharti Airtel: Ahead Of Q4 Result; May Face Strong Resistance Around 366-375 Zone

Trading Idea: Bharti Airtel

CMP: 360

Either sell around 366-370 or on rise around 376-386-396;

TGT: 355-345*-325-314*-303-290-280*-260 (1-3/6M)

TSL> 400

Note: Consecutive closing (3 days) above 400 for any reason, Bharti may further rally up to 420-435* and 453*-470 & 520*-720 in the near to long term (alternative bullish case scenario).

Q4FY16 result and buy back details will be published today.

Consolidated Q3FY16 TTM EPS: 13.63

Consensus Q4FY16 PAT: Rs.995 cr (YOY: 1255.30; QOQ: 1116.90)

Estimated Q4FY16 EPS: 2.49 (YOY: 3.14; QOQ: 2.79)

Estimated Q4FY16 TTM/FY16 EPS: 12.98 (YOY/FY15: 12.97)

Average PE: 20 (Industry PE: 10)

Some analysts are also estimating significantly higher Q4 PAT of around Rs.1179 cr with some pressure on operating margin/EBITDA level amid incremental opex for upgradation of network.

All eyes will be also on the ARPU and plan to counter the forth coming R-Jio aggression along with its ongoing de-leveraging plans (specially African assets) to prune its massive debt of around Rs.66367 cr stands as on FY15.

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