Bharti Airtel stock’s fate tied to ARPU numbers

If the ARPU numbers rise telecom stocks like Bharti Airtel will go up, explains Mahantesh Sabarad of SBICAP Securities in this interview with ET Now. Edited excerpts:

How much merit do you find in Credit Suisse’s report saying that metals should be avoided?
I do not know whether price-to-book is a multiple that you should be looking at when it comes to metal stocks. After a long time, we are seeing capacity utilisation going up sharply in the metal space. In the past decade or so, metal industry has been bogged down by over capacity particularly from China. They had too much of inventory; those have either been gradually consumed or the capacity is getting rationalised. Consequently, the utilisation levels are up sharply and that has led to the rally in metal prices. I believe that the rally will continue because now we are at the cusp of a recovery which boasts very well for the metal sector where demand is gradually ramping up.