Shares of Bharti Infratel fell to over 1-year low due to loss in Q4 tenancies. The telecom tower company shares fell as much as 3.8 per cent to Rs 315.65, their lowest since March 28, 2017. The stock posted biggest daily percentage loss since March 19.

Bharti Infratel has registered a consolidated net profit of Rs 606 crore, up 2 per cent, for the quarter ended March 2018 against Rs 597 crore in the same period last year.

Q4 net profit missed analyst estimates due to loss in tenancies with some Indian mobile carriers either shutting down or consolidating operations.

Akhil Gupta, Chairman, Bharti Infratel Ltd, said that last fiscal saw a consolidation in the telecom industry with merger or shutdown of five operators. The company reported a loss of 22,134 co-locations on this account during the year.

Nomura analysts say while increasing tenancy exits and zero uptick in gross tenancy additions are dampeners, they are encouraged by the uptick in tower additions. The brokerage has kept the target price at Rs 354 with 'neutral' rating.

Bharti Infratel's exposure to smaller operators are now down to about 3 per cent by Morgan Stanley's estimates, and Morgan Stanley analysts expect it to affect the company in FY2019.

Nine of 26 brokerages have rated the stock “buy” or higher, 13 “hold” and four “sell” or lower; their median target price is Rs 375.

(With inputs from Reuters)

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