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Topic : Best & Worst Stocks
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Industry : Equity Research/Analytics
Functional Area : India
Activity: Question posted: 09 10 2009 10:24:19 +0000, 9 answers, 1378 views, last activity 07 06 2010 20:18:08 +0000
 
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There is news of Bharti airtel & MTN deal for a long time, but then that is not happening, and today shares of Bharti Airtel jumped nearly 4% in the morning trade on the BSE with reports of its planned merger deal with South Africa's MTN is moving forward and will happening anytime soon. Shares of Bharti Airtel advanced 3.55 per cent to a high of Rs 424.40 on the BSE.

Media reports suggest that both the companies have reached a preliminary agreement on their planned strategic alliance, ahead of the September 30 deadline for their exclusive merger talks.  On the National Stock Exchange the scrip gained 3.58 per cent to a high of Rs 424. Over 19.63 lakh shares changed hands on both the exchanges.


http://theviewspaper.net/wp-content/uploads/2009/08/bharti-airtel-mtn.jpg

 

Meanwhile, Bharti in a statement has said its talks for a proposed deal with the South African entity MTN are progressing but have not reached any initial agreement.  Bharti and MTN are in exclusive talks for a potential USD 23-billion deal that would create a combined entity having more than 200 million subscribers.

And as per the reports it suggests that in the proposed transaction, Bharti will be having 49 per cent in MTN while the South African company will be  having a 36 per cent "economic interest" in the domestic firm.


So what do you think guys is Bharti Airtel stocks a safe bet? Share your views.

 
 Top Answer :
Rating : +1 

yes definitely bharathi airtel is a good company to bet your money. it is almost an

"infosys" for the telecome sector. But one should take a wait and watch approach in

the current volatile stock market. i guess we can still pick up the stocks at the lower levels

as the overbought market is due for its correction



  Answered by     RAVICHANDER VENKATRAMAN, Chief Enabler  | 04 15 2010 12:11:28 +0000
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No way friends. On the contrary, Airtel is fast digging it own grave!

While I was browsing online to air-and-share my experience with Airtel, stumbled upon (Typing Airtel+fraud or Airtel+cheat in Google) their consistent and systematic swindling of retail customers, most of whom have silently borne their brunt. For many, like the first listing below, it has been an awful and disgusting experience. The list of pages and the individual listings would require years to read! I made a sample study after going through 100’s of pages – Primarily understood the magnitude of this SCAM, done without batting an eye-lid, year after year.)

Here are the voices of some of them…

My Experience With Airtel Broadband in Jaipur, India (This gentleman has, hit the nail-on-the- head, much before anyone, isn’t it?)

http://pegu.in/myvoice/internet-service-provider/my-experience-with-airtel-broadband-in-jaipur-india/comment-page-1/#comment-60

And some samples…

Airtel cheated me

http://www.rtiindia.org/forum/4935-airtel-cheated-me.html

Feel CHEATED by AIRTEL

http://www.techenclave.com/broadband-forum/feel-cheated-by-airtel-134215-2.html

Double Billing

http://www.consumercomplaints.in/complaints/double-billing-c26101.html

Airtel Complaints - ISD Activation

http://www.consumercomplaints.in/complaints/isd-activation-c29186.html

Airtel Prepaid Fraud

http://broadbandforum.in/airtel-broadband/58271-airtel-broadband-not-fair-but-fraud/

http://www.mka.in/index.php?/archives/63-Airtel-Prepaid-Fraud.html

Bharti Airtel ventures into Retail Fraud

http://viewsreviews.wordpress.com/2006/12/30/bharti-airtel-ventures-into-retail-fraud/

AIRTEL fraud-- illegal deduction of money from balance

http://www.complaint.customermath.com/complaint/45842-AIRTEL_prepaid_.html

Airtel datacard fraud

http://www.consumercourt.in/internet-services/5798-airtel-datacard-fraud.html

Airtel FRAUD

http://www.lawguru.com/legal-questions/india-consumer-law/airtel-fraud-bought-prepaid-connection-112621146/a

Airtel cheats NRIs with lame tricks: Airtell CallHome

http://rashmiranjanpadhy.com/2009/05/05/airtel-cheats-nris-with-lame-tricks/

AIRTEL FRAUD – Moving to Consumer Court!

http://www.sriviews.com/2010/03/airtel-fraud-consumer-court-hyderabad-cheating-customers-postpaid-prepaid-worst-service-support-madhapur-office-retain-old-documents-address-verification-case-issue/

Some Assorted complaints

http://www.my3cents.com/productReview.cgi?company=Airtel

http://worldthrumyeyes.wordpress.com/2008/05/19/airtel-service-bad-bad-bad-really-bad/

http://www.complaintsboard.com/complaints/airtel-c37.html

Innocent techie in jail, sues Airtel for Rs. 20 Crores!

http://www.siliconindia.com/shownews/Innocent_techie_in_jail_sues_Airtel_for_Rs_20_Crores-nid-61203/1/1/#success

Airtel Cheating Customer and Irrate Service

http://www.consumercourt.in/mobile-services/6698-airtel-cheating-customer-irrate-service.html

Airtel's cheap cheating tricks

http://balajin.net/blog/archives/2008/04/27/airtels_cheap_cheating_tricks.html

How Airtel increases it revenues by cheating customers?

http://managementblog.customermath.com/index.php/2009/01/13/airtel-increases-revenues-cheating-customers/                         

The listings go on and on, tens of thousands, from the Techies to the Entrepreneur to the common man- Again, these are only online forums. We can safely multiply this number by 1000 or 10,000 to include the offline customer woes, from Karnal to Kanyakumari, off-and-on the Consumer Courts/forums as well. A quick analysis of the content, language, tone and tenor, Jantha pouring in forums, their peer groups, blogs etc., running into  hundreds of pages with tens of thousands of individual experiences with Airtel reveal their TRUE COLOURS. Most pertain to GREED-ie.”Dumping” AND “Cockroach Type Approach” to Customer service, "Sensuous Lip-service", at the start though.

The first "self inflicted Tsunami" for Airtel will be on July 1, 2010 when MNP will be in operation!. Amen!

  Answered by     Arunangshu Choudhury, Agent, L.I.C  | 01 06 2010 17:55:04 +0000
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No this stock is best avoided as there are a huge number of new entrants who are going all out to capture the existing subscribers.Consequently all the telecom companies are facing a huge amount of margin pressure.Also the launch of new services like 3G is getting further delayed with little clarity on important issues like Licensing Fees and Number Portability.

  Answered by     Hasan Zubair, Head - Client Support Unit, UBS  | 09 13 2009 07:42:36 +0000
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Bharti has always been a great stock to invest in. Personally, I feel the MTN deal is expensive and might act as a catalyst in lowering its current share prices however, it still remains an excellent stock to invest if you are planning long term.

Also, with 3G license at its disposal, I expect greater service penetration and revenues in the next 12 months. As some one said earlier, it is the Infosys of the telecom sector, I would rather label it as Microsoft of the Indian telecom sector. 

 

  Answered by     Surya Prakash Pandey, Solution Architect, Telco, IBM India Pvt. Ltd.  | 09 11 2009 09:47:50 +0000
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Yes Of course, It will be good choice to have stocks, as it is crystal clear that Airtel is market leader in telco .... with global level expansion plans ..it has been already instantiated with SriLanka and US, also merger with MTN...

  Answered by     Sonal Singh, Project Manager, Nortel Networks  | 09 11 2009 09:16:12 +0000
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For long term investment, it is a safe bet. The current position of the stock market is very much volatile. We should pick up the stocks at the lower levels right now. The overbought market is due for its correction. Bharti Airtel is leading the market in portfolio management.Their stocks are also in a very good position.

  Answered by     Upendra Pratap Singh, Head/VP/GM-R&D, SAIL,Bokaro Steel Plant  | 09 10 2009 15:41:15 +0000
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Telecom sector has great future and deserves a place in ones portfolio. Bharti Airtel is market leader in this sector and has a visionary management. Bharti Airtel stock appears a good and safe bet.

  Answered by     Mathew Cherian, Research Associate/Analyst, Western Michigan University  | 09 10 2009 13:07:47 +0000
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Bharti as now with 60000 and odd bottom line, 40rs. eps and 8 rs dividend seems to be a good company to parke your money. Then TATA is planning a 1 re unlimited talk time product which might make downward pressure on the pricing of all others. Still I believe number interchagebility still noooot in force the affect may be surmountable. I feel compared to companies available in India it is less risky to invest in BA

 
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