Low valuations pulled Bharti stocks down

Bharti-Airtel-LogoThe number one telecommunication company of the country, Bharti Airtel's stock is currently suffering from low valuation as the stock has been battered due to recent deal with Zain Telecom.

The stock prices have dropped down to an all time low valuation. However, the company has been dealing with several issues since October last year. The tariff war in the market has pulled the price of Airtel stock down. The "per second billing" have affected the company's consumer base as well as its revenue. After that Bharti went for some overseas acquisitions which could not add much to the net profit. In the year 2010, there was a marginal increase in stock price but the investors seem to be not in for of the company's proceedings.

The current stock price of Airtel is about Rs 290. But the P/E is almost at a miserable 52 weeks low 11.6 which is even lower than that of other small telecom companies. Bharti's enterprise value is also seven times lesser than its EBITDA.

However the telecom giant is expecting to hit back soon. The company is having fresh proposals for a long term growth.