With a market capitalization of Rs 5,00,000 crores, the shares of Bharti Airtel Limited are trading in the green today and are currently available for Rs 880. In the last five trading sessions, the scrip gained around 3.40 percent ranging from Rs 851.65 at the end of June to the current price levels.
According to the Block Deal data available with the Bombay Stock Exchange (BSE), Lion Meadow Investment Limited, an affiliate of Warburg Pincus, offloaded 1.9 crore equity shares of the Telecom company equating to a 0.32 percent stake. The shares were disposed off at an average price of Rs 868 making it an aggregate transaction value of Rs 1,649.20 crores.
The ‘Capital Group’, along with its funds/affiliates, emerged as the party buying around 1.25 crore shares. Capital Group bought 4.23 lakh shares and its Funds such as New World Fund Inc bought 42.61 lakh shares, American Funds Insurance bought 13.75 lakh shares, and Euro Pacific Growth Fund bought 64.13 lakh shares. The shares were bought at an average price of Rs 868 per share.
Having a glance at the financials of Bharti Airtel, the operating revenues, as well as net profits of the company, increased in the recent period with the former moving from Rs 116,546 crores during FY21-22 to Rs 139,144 crores in FY22-23, and, the latter nearly doubled from Rs 5,882 crores to Rs 11,535 crores during the same time horizon.
Moreover, the company’s profitability metrics, in the last couple of years, improved with the return on equity (ROE) shifting from 6.39 percent during FY21-22 to 10.76 percent in FY22-23 and the return on capital employed (ROCE), keeping the timeframe the same, rose from 10.00 percent to 11.01 percent.
According to the shareholding data available for the March 2023 quarter, the Promoters hold a 55.02 percent stake, and Foreign Institutional Investors (FIIs) hold a huge stake of 20.97 percent in the company.
Bharti Airtel Limited is a company engaged in the telecommunications industry with various segments including Mobile Services, Tower Infrastructure Services, and many others. The company generates maximum revenue from the ‘Mobile Services’ segment which covers voice as well as data telecom services and the same is provided through wireless technologies in India.
Written by Amit Madnani
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