Indian stock alert

INDIA

CLOSING UPDATE: Bharti Airtel decreases 0.9%, led Telecommunication services sector lower 18 October 2017 17:10 IST

NEWS BITES - BRIC

This is an end of day Alert, produced after today's Indian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Bharti Airtel, India's largest telecommunication services company by market capitalisation, has decreased 0.9% to trade at Rs461.95 vs. the Telecommunication services sector which weakened 108.3 points (or 0.9%) to 11,550.4. Representing a weighting of about 82.7% of the sector, the stock accounted for 76.4% of today's loss. Trading volume was 1.9 times average at the end of the day. Compared with the BSE SENSEX Index which fell 24.8 points (or 0.08%) in the day, this represented a relative price change of -0.8%.

Technical indicators complementing today's significant downtrend:

+ The 1.6% discount to 12-month high of Rs469.35 against the 63.6% premium to 12-month low of Rs282.34 suggests the climb might be peaking.

Note

Bullish Signals:

The positive 11.77 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

In the last three months the stock has hit a new 52-week high seven times, pointing to a significant uptrend.

The price soared 14.5% in the last week and 16.5% in the last month.

The present value of Rs1,000 invested one year ago is Rs1,514 [vs Rs1,162 for the BSE SENSEX Index].

Total Liabilities/EBITDA of 4.3 is less than the Joseph Piotroski benchmark of <5.

Tobin's Q Ratio is 0.8. Compared with the rest of the market the stock is undervalued.

Net profit margin has averaged 5.8% in the last 3 years. This is better than the sector average of 5.2% and suggests a high margin of safety.

The Brand Value represents an impressive 8.1% of the estimated Enterprise Value of Rs2,989.6 billion (US$46 billion).

As per the Du Pont analysis, Return on Equity is less than stellar at 6.9%. Also, this has deteriorated from 11.5% last year.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Dividend yield of 0.2% [0.2%]

Return on Equity 6.9% [2.7%]

Return on Assets 1.8% [0.8%]

Return on Capital Employed 10.2% [8.2%]

TODAY'S ALERT

Morning Alert: Bharti Airtel decreases 1.5%

18 October 2017 10:16 IST

Bharti Airtel Limited (NSE:BHARTIARTL) traded on volume of 0.6 times average so far today while the price decreased Rs7.15 (or 1.5%) to trade at Rs458.80.

RECENT ALERTS

CLOSING UPDATE: Bharti Airtel lifts 2.8%, led CNX Infrastructure index higher

17 October 2017 17:10 IST

Bharti Airtel, India's largest telecommunication services company by market capitalisation, has lifted 2.8% to trade at Rs465.95 vs. the CNX Infrastructure index which strengthened 24.9 points (or 0.7%) to 3,413.8. Representing a weighting of about 16.9% of the index, the stock accounted for 64.7% of today's gain. The shares have outperformed 97% of the market in the past week. Trading volume was 3.9 times average at the end of the day. Compared with the BSE SENSEX Index which fell 24.5 points (or 0.08%) in the day, this represented a relative price increase of 2.9%.

Afternoon Alert: Bharti Airtel keeps rising: up 14.7% in 3 days

17 October 2017 12:58 IST

Bharti Airtel Limited (NSE:BHARTIARTL) extended its gains on Tuesday, rising an additional Rs5.65 (or 1.2%) to trade at Rs458.95. Trading volume was 94% of average so far today. The shares have risen Rs58.70 (or 14.7%) over the past three trading days vs. the BSE SENSEX Index which has risen 1.3% in the same period.

Bharti Airtel Limited (NSE:BHARTIARTL; BSE:BHARTIARTL; NS:BHARTIARTL; IN:BHARTIARTL)

ISIN: INE397D01024

PermID: 4295873022

Source: www.BuySellSignals.com