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Motilal Oswal Financial Services has advised clients to buy Bharti Airtel with a target of Rs 450.
On Tuesday's morning trade, the stock is trading at Rs 318, up 20 basis points against previous close.
According to the report, depreciation in Indian currency is not a significant drag for Bharti. "We believe the market reaction could be over-done. Even a 10% depreciation in rupee against US dollar impacts Bharti's fair value by only Rs 15 a share in the worst case," says the report.
Actual impact on Bharti's valuation is moderate as Africa business acts as a natural hedge, it adds.
However, the report said that a potential sharp depreciation in the African currencies could be a risk for Bharti.
