Information about Bharti Infratel Ltd:

In India, Infratel boasts of over 39,000 towers which are spread across 18 states and 11 telecom circles. The company aims to build businesses that impact society positively. The company is a pioneer of the Shared Tower Telecom Infrastructure services. The company provides tower infrastructure services. The towers installed by Bharti Infratel Limited are of two types—ground-based and roof-top.

History:

Infratel was an Airtel subsidiary in the 1990s and early 2000s. In 2007, Bharti Infratel was established as a separate tower company. This was done to provide savings to telecom service providers by using Airtel's large tower base. In the latter part of 2007, Bharti Infratel, Vodafone, and Aditya Birla Telecom formed a joint venture, creating Indus Towers in which Infratel has about a 42% stake.

Management of Bharti Infratel Ltd:

Mr. Akhil Gupta is the Chairman of the Board. Mr. Devender Singh Rawat is the Managing Director and Chief Executive Officer. Other than these two key people, the company has nine Independent and Non-Executive Directors.

Listing information:

Bharti Infratel Limited shares are traded on the BSE and the NSE.

BSE: 534816

NSE: INFRATEL EQ

ISIN code: INE121J01017

Sector: Infrastructure

Industry: Infrastructure - General

Bharti Infratel Limited also forms a part of indices like Nifty 50, S&P BSE 500, et cetera.

It is also listed on the MCX Stock Exchange.

Market Capitalisation:

As of March 2018, Bharti Infratel Limited has a market capitalization of about Rs.63,200 crore.

Wealth and recent performance:

According to the audited consolidated results, the company had a total income of Rs.17,163 million in the third quarter of FY18 which was up from the total revenue in the previous quarter which was Rs.16,738 million.

In the previous financial year, the company had a total income of Rs.15,478 million in the third quarter. Thus, we can see that the company has shown an increase in total revenue.

The total expenses incurred by the company in the third quarter of the FY18 was Rs.8,844 million which was also up from the total costs incurred by the company in the previous quarter which was Rs.8,609 million.

The total expenses incurred by the company in the third quarter of the previous financial year was Rs.8,188 crore.

The total profit before tax for the third quarter of FY18 was Rs.8,352 million which was a decrease from the total profit before tax in the previous quarter which was Rs.8,973 million.

In the third quarter of the FY17, the company made a total profit before tax of Rs.8,824 million.

The company made a gain of Rs.5,854 million after tax in the third quarter of the FY 18 and Rs.6,384 million in the second quarter of the FY18. In the third quarter of FY17, the company made a profit after tax of Rs.6,204 million.

The net segment assets as reported for the third quarter of the FY18 was Rs.1,89,759 million and the net segment liabilities as reported for the third quarter of the FY18 was Rs.25,835 million.

The assets had appreciated from Rs.1,82,971 million in the second quarter of FY18, and the liabilities had increased from Rs.24,552 million in the second quarter of FY18.

The stock trend in 2018:

In January 2018, the stock opened at about Rs.369. Over the next few days, the stock gained about Rs.10. During the third week of January 2018, the stock dipped to a low of about Rs.343. The stock closed for the month at about Rs.351.

In February 2018, the stock opened at about Rs.346. For the whole of February 2018, the share remained below Rs.350. It closed for the month at about Rs.346.

In March 2018, the stock opened at about Rs.345. The stock dipped for the first week, with a low of about Rs.329. The stock gained at a price again to reach a high of about Rs.349, but this did not last. Towards the last week of March, the stock reached nearly Rs.342.

Should one invest in Bharti Infratel Limited?

Bharti Infratel Limited has adopted green and sustainable practices in all its operations, causing it to be awarded the Green Initiative of the Year 2016 title.

In 2016, Bharti Infratel won the Top Telecom Tower Company of the Year 2016 award.

In 2017, the company was awarded the Gold Award – Business Excellence Framework-2017.

The company received the Golden Peacock Award for Risk Management at the Singapore Global Convention.

The company has shown steady and forward thinking CSR activities in providing water and ensuring sanitation.

In 2018, the company again won the Gold Award – Business Excellence Framework-2018.

The company has achieved a substantial profit in each of the last two quarters.

The total income of the company in FY18 was higher than the total revenue of the company in the FY17. It indicates the potential for profits.

The company provides telecom infrastructure for other companies indicating that it has a firm hold over the sector. It also implies that the company has many excellent sites at which it has built towers for telecommunication operations, resulting in a constant source of revenue for the company.

All of these awards indicate that the company is a well-performing company with a healthy and positive public image.

While these can indicate good signs for a person who is interested in investing in stocks of Bharti Infratel, it would be better to do personal research based on financial freedom and risk appetites before investing.

Stocks or Mutual Funds: Here is our recommendation

A lot of research and knowledge is required in stock market investments, and generally, they don't offer any tax benefits. Hence at mymoneykarma, we merely motivate our readers to invest in mutual funds. Investing in mutual funds doesn't require a lot of knowledge, and equity-linked mutual fund schemes also provide tax benefits. In addition to it, since mutual funds contain stocks from multiple companies, they help in building a diversified portfolio.

Note: The contents of this post/blog do not constitute any professional advice on a specific financial matter.

Indexes and Exchages

Bombay Stock Exchange (BSE)

The Bombay Stock Exchange, popularly called BSE, is Asia's first and oldest stock exchange. Located at Dalal Street in Mumbai, the BSE was formally established in 1875 by an influential stockbroker and businessman called Premchand Roychand. In the initial days, the BSE had its meetings under several Banyan trees in Mumbai before finding a permanent place, which is very appropriately named Dalal Street or Broker Street. After functioning as a floor trading exchange for more than a century, BSE ascended the digital ladder in 1995 by implementing a new screen-based automated trading platform with a capacity of 8 million orders in a day. In 2012, the BSE went global by becoming a Partner Exchange of the United Nations Sustainable Stock Exchange. Subsequently, BSE established India's first international exchange, called INX, in 2016.

National Stock Exchange (NSE)

NSE was set up in 1992 by a group of leading Indian financial institutions, following the Indian Government's directives. It aimed to bring transparency to the Indian capital market. It was India's first demutualized electronic exchange which operated on a completely automated screen-based electronic trading system, offering an easy trading facility to all Indian investors. NSE began its operations in the Wholesale Debt Market segment in 1994. NSE was the first company in India to offer a digital platform that connected the investor base of the entire country. NSE offers services in various segments, such as trading, equity derivatives, clearing and settlement services in equity, debt and currency derivatives, etc.

NIFTY Index

The NIFTY is NSE's flagship index that tracks the behavior of a portfolio of blue-chip companies that have the largest and most liquid Indian securities. It is owned as well as managed by IISL (India Index Services and Products Ltd), which is India's first specialized company to focus on an index as a core product. Nifty indexes 50 of the 1600 companies on the National Stock Exchange (NSE) and is thus popularly referred to as 'Nifty 50'. It captures approximately 65% of its float-adjusted market capitalization and is a true reflection of the Indian stock market. The Nifty 50 includes the major sectors of the Indian economy. It offers the exposure to the Indian market in one efficient portfolio. The Nifty index has been trading since April 1996. It is ideally suited for index funds, benchmarking and index-based derivatives.

SENSEX Index

Sensex is BSE's stock market index. It consists of 30 well-established and financially flourishing companies listed on BSE. It was established in 1986. These 30 component companies are known for being the largest and most actively traded stocks. They represent various industrial sectors of the Indian economy. Sensex is also known as BSE 30 and S&P BSE SENSEX. The word 'Sensex' is a portmanteau of the words 'Sensitive' and 'Index.' SENSEX is widely reported in domestic and international markets through print and electronic media. The indexing system is scientifically designed, based on globally accepted construction and review methodology. Since September 2003, S&P BSE Sensex is being determined on a free-float market capitalization methodology.