The day just started and Bharti Infratel is on a roll! Know why

Shares of Bharti Infratel Ltd rose as much as 2.1 percent after global brokerage CLSA raised its price target on the telecom infrastructure provider to `520 from `450 on expectations of a ramp up in networks by existing operators.

Bharti Infratel rose 10.50 rupees to 468.70 rupees on the National Stock Exchange where 1.75 lakh shares were traded in the first 40 minutes of trade compared with a 5-day average of 10.8 lakhs.

CLSA said in a note to clients it expects Bharti Infratel to clock higher growth rates in the coming quarters as its clients such as Bharti, Vodafone, Reliance Communications and Idea Cellular expand networks to provide newer data services under the 4G banner.

Bharti Infratel provides towers, radio dishes and other equipment across India to all operators, who benefit from reduced capacity expansion costs due to network sharing.

CLSA expects Bharti Infratel's EBITDA and PAT to grow 15 percent and 22 percent respectively each year over FY15-17.

Bharti Infratel's market capitalization has surged 71 percent in the past one year to 86,600 crore rupees as investors preferred the safety of predictable revenue stream via rentals.

(Image credit: Indiatimes)