Bharti Airtel plunges to five-year low

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Bharti Airtel plunges to five-year low
Shares of Bharti Airtel fell on fresh re-ratings, after Credit Suisse downgraded the stock, citing prospects of Reliance Infotel entering the wireless voice market.

The stock of the company has fallen 15% since August 8, after reporting a disappointing set of quarterly numbers. The shares of the company was trading lower by 3.15% at Rs 250 on NSE at 12.00 pm IST.

As per Reuters report, a unit of Reliance Industries was expected to only enter the Indian wireless data market. A move which according to Credit Suisse would benefit Reliance Infotel and aggravate competition in a segment in which Bharti Airtel is one of the top players.

Credit Suisse cut its ratings on the stock to "underperform" from "neutral", while cutting its target price to Rs 220.
On Tuesday, Morgan Stanley downgraded and said traffic growth in the segment was coming at the expense of operating margins as tariff wars in the sector bring down average revenue per minute for voice calls. The investment bank cuts its target price to Rs 280 from Rs 366, as per the report.

Bharti Airtel has now seen a series of downgrades after disappointing quarterly results including those from Goldman Sachs and Standard Chartered.

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Read more about: bharti airtel
Story first published: Wednesday, August 22, 2012, 12:07 [IST]
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