Valuation of the stock

Valuation of the stock - Valuation of the stock of Airtel,...

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Valuation of the stock of Airtel, Reliance, Tata Communication By Chinmay Shah Aftab Hashambhai Karthik V. Bhattarahalli
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INTRODUCTION We have chosen Bharti Airtel, Tata Communications, and Reliance for the project Valuation of the stock of different firms. All the three companies belong to the telecommunication industry. We have purposely chosen the companies in the same industry to make more meaningful comparison of the companies. Airtel is the biggest company having the highest market capital of 150325.23. Reliance is also a big company with market capital 19453.45. Tata communication has the least market capital compared to other two companies. Tata has a market capital of 5356.58. In this paper we have analysed the financial conditions of Airtel, Reliance and Tata Communications and compare the ratios with the industry average. The basic objective of doing the project is to analyze the financial statements of a company, analyze the environment in which it is operating and evaluate its performance over the last 3 years. Hence a thorough Environment Industry & Company analysis is done to understand the external factors influencing the company. Industry covered Factors behind the telecom growth, Industry Structure (services), Technologies, recent growth trends in the Telecom Sector, GSM Coverage in India and Outlook for the Sector. Then we moved to company analysis where we studied that its strategic business group primarily consists of two services namely mobile and infotel services. Infotel services can further be classified into Broadband & Telephone services, Enterprise services and Long distance services. We also studied the shareholding pattern, recent developments in the company and the accounting policies of the company.
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COMPANY BACKGROUND Bharti Airtel - www.airtel.in In 1986, Sunil Bharti Mittal incorporated Bharti Telecom Limited (BTL) and his company became the first in India to offer push-button telephones, establishing the basis of Bharti Enterprises. Bharti Airtel is one of Asia’s leading telecommunication service providers with presence in all the 22 licensed jurisdictions (known as Telecom Circles) in India and also in Sri Lanka and Bangladesh. It operates a GSM network in many countries, providing 2G or 3G services depending upon the country of operation. Airtel is the fifth largest telecom operator in the world with over 207.8 million subscribers across 19 countries at the end of 2010. It is the largest cellular service provider in India , with over 164.61 million subscribers at the end of 2011 April. Airtel is the 3rd largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom . Apart from Mobile operation services Airtel also offers fixed line services and broadband services. It offers its telecom services under the Airtel brand and is headed by Sunil Bharti Mittal . Bharti Airtel is the first Indian telecom service provider to achieve this Cisco Gold Certification. To earn Gold Certification, Bharti Airtel had to meet rigorous standards for
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Valuation of the stock - Valuation of the stock of Airtel,...

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