This one has been a  tough decision. A stock that an investor tracks from Rs 20 to Rs 970 (almost a 50 bagger) is the toughest to let go off. But over the past couple of months I have mentioned my reluctance to see big time gaisn in Bharti  Airtel . The company has a market cap of more then US $ 50 billion and from here on expecting a double could mean a market cap of US $ 100 billion but is there any life after Bharti goes to US $ 100 billion? - If at all!

 

Any increase in EPS now will be accompanied by a decrease in the long term PE. That is because further growth will only limit the potential of the total market.So while M-Commerce and aggressive forays into under serviced areas would drive growth the best seems to be behind Bharti Airtel.

 

Axis Bank on the other hand is gearing up to face the new challenges in the private banking space the new name with new mandates in wealth management and AMC seems to indicate that the management means business. It has delivered a shareholder return of around 48% CAGR since its IPO excluding dividends.

 

So this is not  a case of being bearish on Bharti  Airtel but being unable to see big multifold gains in the same compared to Axis Bank that replaces it in the The Equity Desk XI.

 

 

 

I like RCom more than Bharti Airtel, but how do you mean when you say Mittal is not investor friendly? Usually people point fingers at Junior Ambani when it comes to issues like these.