Bharti Infratel stock price may rise by 25% in one year

Bharti Infratel Limited is a telecom infrastructure service provider that deploys, owns, operates and manages telecom towers, communication structures and other passive infrastructure for various mobile operators. The company is one of the largest tower infrastructure providers in India, based on the number of towers/co-locations that the company owns and operates and the number of towers/co-locations owned or operated by Indus Towers Limited—a joint venture between Bharti Infratel, Vodafone Group and Vodafone-Idea. The company’s consolidated portfolio consists of over 97,000 telecom towers, which includes over 43,000 of its own towers and the balance from its 42% equity interest in Indus Towers. Bharti Infratel has operations across 18 states, and 11 telecom circles in India. The Bharti Infratel stock has performed poorly on the stock exchanges with it delivering a minus 16% return in the last one year. But the Bharti Infratel stock, currently quoting at Rs 180, provides a huge margin of safety and an opportunity to earn a bumper dividend of Rs17.8 per share. This means that the effective price of buying Bharti Infratel is around Rs162 per equity share. Telecom analysts believe that 5G will open up new business opportunities such as higher core rentals, small cell and fibre business. Moreover, in case of any tariff hike by the company, the profits will rise in the future. Investors can buy the Bharti Infratel stock for a 25% price appreciation in the next one-year time horizon.
Stock markets are on a roll in the last six months and new investors have entered the fray. By working from home and bored with lots of free time, many people are turning to the stock market and dabbling in day trading for entertainment and profits during the pandemic. Stock broking companies report that trading of stocks by individual investors have gone up dramatically since April 2020. Day trading may appear like an easy concept. Jump in and out of trades as the price moves, make a little profit and repeat the entire process again. Let’s be honest, trying to make a short-term profit by buying and selling in the F&O market over a relative short period of time can be injurious to one’s health and wealth. It will be an understatement and honest fact to say that day traders do not have the wealth, the time, or the temperament to make money and to sustain the losses that day trading can bring to their door. Day trading is not for everyone; it’s not a get-rich-quick scheme; it’s a tough, high-risk way to make a living; it certainly isn’t for the faint-hearted. However, if you truly want to do some day trading, financial experts suggest that the best thing to do is to only invest a small amount of your money to learn whether you have the knowledge to beat the market.
Rajiv Kapoor is a share broker, certified mutual fund expert and MDRT insurance agent.