Asian Fixed Income/Frontier Market Research

Bondcritic

Bondcritic, established in 2009, is designed to be an independent credit research voice that helps investors gain insights and unbiased analyses on Asian fixed income market. Our mission is to discover deep-value Asian high-yield and distressed bonds with a bottom-up approach, together with the help of our proprietary ESG (Environmental, Social Development, and Governance) model. At the same time, we focus on bringing investment cases of unrated and unloved issuers to the general public.

Indian Mobile - ARPUs Inflect as the Worst May Be over for Bharti, Although Not for Vodafone IDEA

Bharti Airtel Buy on Short Lived Breach Below Support

Bharti Airtel - Performance Is Inflecting at Last. Vodafone IDEA, Not so Much.

Independent Asian Credit Research, Bondcritic

Warut Promboon

Independent Asian Credit Research

Credit

Since our last note <a href="https://www.smartkarma.com/insights/bharti-airtel-saved-by-africa" target="_blank" data-smartkarma-citation="insights:25388" rel="noopener">(Bharti Airtel: Saved by Africa</a> ) dated 26-October-2018 on <a href="https://www.smartkarma.com/entities/bharti-airtel-ltd" target="_blank" data-smartkarma-citation="entities:953:1" rel="noopener">Bharti Airtel (BHARTI IN)</a> (Bharti), BHARTI complex has performed with spread tightening from 186 bps, 185 bps, 189 bps on BHARTI 3/23s, 5/24s, and 6-25s to YTW of 3.71%, 3.89%, and 4.07%, respectively. The performance was in-line with our expectation on improving balance sheet health as a result of the African unit IPO. Improving credit fundamentals, together with overall macro backdrop of low rate environment, we believe the sentiment favors low investment grade credits such as Bharti which we view as a “BBB-“credit with a positive outlook.The fact that the bonds still trade wider than what we consider as a fair spread (35bps) over the Indian quasi-sovereign bonds (See “Valuation” section) leads us to reiterate our OVERWEIGHT recommendation on the BHARTI complex.

Since our last note (Bharti Airtel: Saved by Africa ) dated 26-October-2018 on Bharti Airtel (BHARTI IN) (Bharti), BHARTI complex has performed with spread tightening from 186 bps, 185 bps, 189 bps on BHARTI 3/23s, 5/24s, and 6-25s to YTW of 3.71%, 3.89%, and 4.07%, respectively. The performance was in-line with our expectation on improving balance sheet health as a result of the African unit IPO. Improving credit fundamentals, together with overall macro backdrop of low rate environment, we believe the sentiment favors low investment grade credits such as Bharti which we view as a “BBB-“credit with a positive outlook.The fact that the bonds still trade wider than what we consider as a fair spread (35bps) over the Indian quasi-sovereign bonds (See “Valuation” section) leads us to reiterate our OVERWEIGHT recommendation on the BHARTI complex. 

Bharti Airtel: Attractive Valuation on IPO Galore