Description

This COMPREHENSIVE ANALYSIS has been made by RAMA KRISHNA VADLAMUDI, BKC, BOMBAY, INDIA. In the last one month or so, the stock of Bharti Airtel Limited has attracted investors’ wrath and naturally the stock price has fallen from a level of around Rs 450 to the present level of a little less than Rs 300 as at the end of October 30th, 2009, giving a negative return of around 35 per cent to investors. At this point of time, there’s an intense battle between bulls and bears and they’ve found another stock to beat out of shape or take it upwards. In the ultimate analysis, who will be the winner? Only time will tell. But, in the meantime, as investors, what shall we do? Shall we sell/hold the stock or start accumulating the stock at the current level of Rs 293? I try to answer these questions in a comprehensive manner. In the following pages, you’ll find my analysis. Basically, Bharti Airtel is a GREAT company despite its attempt at diversification into Africa and other countries. Though investors should be cautious with all acquisitions and diversifications, the stock on Indian bourses is providing interesting and compelling options to long-term investors.