Bharti Airtel

Alchemist

Administrator
Staff member
#2
I have bought 500 shares of bharti but i am confused whether to sell them now or should i wait for some more time
Bharti is a leader in one of the fastest growing segments of the Indian economy.

India has 15 crore mobile subscribers and this number is growing very fast.There is still a lot of upside potential for mobile companies.

NEVER EVER SELL THIS SHARE....at least don't sell for next 10-15 years.
 

Alchemist

Administrator
Staff member
#4
Bharti Airtel is a buy and forget stock.

Are you an investor or a trader?

If you are an investor, you should not worry.

At Rs 847 a share, Bharti's stock is trading at 40 times FY 2007 earnings. This may look at a bit expensive, but considering the rate at which the company is growing, it looks reasonable.

The company had net profit of Rs 1413 crore in Q1 of FY 2008 and an eps of around Rs 7.5. Even if we assume zero growth in next three quarters, FY 2008 eps would be Rs 30.

This makes the stock's forward PE to be little over 28. I think this is an attractive valuation and investors should definitely hold on to the stock.

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Technically, the stock looks weak in the short to medium term.

It failed to reach its previous top of 959 in this rally and has again gone below the 50 day EMA.

I think the stock may fall further and may test its previous bottom of Rs 750.

The 200 day exponential moving average is currently at Rs 763. This 750-770 range is a very strong support for the stock.
 

Alchemist

Administrator
Staff member
#6
Technically, if you want to buy this stock, then Rs 834 is a very good price.

The stock is currently at its 200 day EMA.

In last four years, the only time the stock has fallen below its 200 day EMA was in June 2006 (blue arrow). Even during this fall, it was below the 200 day EMA for just a few days.

Bharti can bounce bank sharply from these levels.



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As for the question, is it worth buying?

I will look at this stock tonight and let you know my opinion.
 
#7
Bharti closed below its 200 day EMA today.

Seeing the way the stock has behaved over the last few months and especially the last 2-3 days, is this an indication of a serious break to the uptrend? Also a lot of things have been happening in this sector, and there is a lot of news/confusion on spectrum, on rates and so many other things.

Is this a good time to enter the stock from a long term perspective? Or is it better to avoid the stock for the time being, let all the news come out, and only then enter?
 
#8
Bharti/RCom/BSNL

Bharti technichaly luks fine at 830/-. But considering the RCom's as well as other players entry into new circle in GSM it is goin to be very competitive. But Bharti has so many lines underground.

I do think that BSNL can be a threat if it comes up with its own IPO this year coz it has the most coverage and will hav to be manged very efficiently(Not like dayanidhi maran - for his own Biz intrests), its assets will get rerated etc etc[Copper lies undergrnd is huuuuge + prime land assets + other electronic systems like microwave antenna switches routers etc]. then even BSNL will have to be more competitive which in turns can very well chuck out many players(even RCom) to very less profits. [This has been told to me by 3 of my frnds workin with Airtel idea and Zte telecom company in cochin as Engineers and marketing head] - All 3 replied to me in same voice...
 

Alchemist

Administrator
Staff member
#9
Bharti closed below its 200 day EMA today.

Seeing the way the stock has behaved over the last few months and especially the last 2-3 days, is this an indication of a serious break to the uptrend? Also a lot of things have been happening in this sector, and there is a lot of news/confusion on spectrum, on rates and so many other things.

Is this a good time to enter the stock from a long term perspective? Or is it better to avoid the stock for the time being, let all the news come out, and only then enter?
Technically it is a bad sign.

Anyway, the best days in telecom and over and returns from now onward will be moderate.

All these new companies entering the telecom sector are going to kill margins in the sector.

Also growth is expected to slow down in coming quarters.
The penetration in cities and bigger downs has reached 50%+ levels.

The income levels in rural India are much lower and consumerism is non-existent. Growing in rural markets is going to be a much difficult task.

I have not looked at valuations of Bharti Airtel. This is just a general sector view.
 
#10
Bharti have taken serious beating in the past few days and its not showing any chances of bounce back. Will the stock go down further or will it come back to its levels of 950+ before budget?
 

Alchemist

Administrator
Staff member
#12
Bharti is trading in 750-780 range which is its support level.
Will it bounce back in short term ?
The stock has gone below the 200 EMA and may not go above it easily.

The 200 EMA is at Rs 860 and this is just 10% above the current price of Rs 781.

The risk-reward for long position is not favorable at this time.
 

man4urheart

Well-known member
#14


-Broad trend is down, but ADx is signalling a trading range.
- 50 EMA is below 200 EMa and both are flat! signaling a trading range!
- Price is below both
- High probability we might see much lower prices!

Since 50 Ema is close to 200 Ema, Wait for 50 EMA close above 200 Ema or trend breakout!
 

San Yad

Active member
#15
- High probability we might see much lower prices!

how much price we expect to fall in coming days?

is there any advisable range that we can think to enter?

rgds
 
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man4urheart

Well-known member
#18
Yes, If pattern doesn't breaks, we will see that price, as that is speciality of Rounding Top. Yellow lines marks the immediate breakup points for pattern.

REL COM is expected to post better growth in Telecom sector, as compared to IDEA and Bharti.

Have you thought on this? Why interested in a company which will grow slower?
 

San Yad

Active member
#19
Thanks for your suggestion indeed.

Yes, I dipped in today in Rel com @ 490... lets see how it goes?

How about spice? ... Talk is going on in bet. idea and spice ...

What you thing which is better to watch in between idea and Spice?

rgds,
 

man4urheart

Well-known member
#20
I think you are about to make a mistake which I have made earlier.

You said you already bought RCOM, then why are you still looking at IDEA, SPICE, BHARTI at same time.

Have you thought that you will get over exposure in one sector; TELECOM. If this sector gets the Bear hammer, there goes your porfolio for a toss...

I strongly Suggest take positions with thumb rule, one share in each sector.

Rest is your money...

I am still sitting on losses becuase of my mistakes in past...take care
 
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