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Bharti Airtel is India’s leading mobile telecom company. Intense competition in the industry has led to complete destruction of profits, but with consolidation in the industry being complete, we expect revenue per customer to improve. As and when the revenues move up, most of it will flow to the bottomline as the company’s costs are fixed. Capex requirements have also reduced and after several quarters, the company was cashflows are now positive. We have an over weight rating on the stock on the assumption that pricing has bottomed out and the company will be able to improve yields through increased tariffs or value added services. Recent trends suggest that revenue per customer is moving up. Major risk factor was Supreme Court judgment on adjusted gross revenues, for which provisions have been made and large part of the liability paid – 19-05-2020 Price: 598.80 Rating: Over Weight Recommendation: Buy

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