Tenancy gains key worry for Bharti Infratel to maintain revenue momentum

The price hike by Bharti Airtel and Vodafone Idea, however, is a relief given that they are anchor tenants

After hitting a 52-week low following the Supreme Court's order on adjusted gross revenues (AGR) last month, the stock of Bharti Infratel has bounced back by gaining over 30 per cent. The overhang related to its two key anchor tenants, Bharti Airtel and Vodafone Idea, continues but the street believes that the worst is already factored into the stock.

Given that Bharti Infratel's revenues are dependent on the number of tenants it has, the confidence of its customers is important for maintaining its revenue momentum. The recent decision of the two anchor tenants to raise prices from December 1, is