While Bharti has demonstrated strong resilience amid market fluctuations, Reliance continues to trade at attractive valuations, making both stocks compelling for different types of investors.
In a recent ETNow interaction, independent market expert Hemang Jani shared his perspective on the Reliance vs. Bharti Airtel debate, highlighting their distinct investment appeal and advising investors on how to approach them.
Jani acknowledged Reliance’s underperformance over the past year, contrasting it with Bharti Airtel’s stability.
“What we must understand is that in the last one year while Reliance has been a big underperformer, Bharti has remained quite resilient and stable,” he noted. Despite Bharti’s strong performance, he pointed out that much of its growth potential is already factored into its price.
For investors seeking value and a favorable risk-reward ratio, Jani leans towards Reliance, citing its attractive valuation. “If you are a value investor and you look for a risk reward, definitely given the much attractive valuation of Reliance, one should go with that,” he said.However, Bharti Airtel, in his view, remains a strong allocation stock due to its resilience in challenging market conditions and upcoming earnings growth from ARPU improvements and capex savings.”Bharti has been such a brilliant performer in the most difficult market conditions and given the way things are going, there is going to be a decent amount of incremental earnings come through from the ARPU and savings on the capex, etc.,” he explained.
Summing up his stance, Jani stated that both stocks merit allocation but for different reasons. “Bharti would be more like a stock that you want to own because of the current uncertainty and Reliance pure value play, a much better risk reward,” he concluded.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
