Bharti Airtel Ltd stock started its trading session at Rs 762.60 and currently trades at Rs 765.70. The scrip is flat gaining around 0.30 percent as compared to the previous closing price of Rs 763.45.
In January 2020, the company issued USD 1,000 million 1.50% Convertible Bonds (FCCB) due in 2025. The Bonds are convertible into the company’s fully paid-up equity shares of Rs 5 each at any time on or after February 27, 2020 and up to the close of business hours on February 07, 2025 at the option of the FCCB holders.
With respect to the above, the company provided an update through a filing over the exchange yesterday mentioning about the ‘Special Committee of Directors for Fund Raising’ approving the allotment of 706,161 fully paid-up equity shares of face value Rs 5 each at a conversion price of Rs 521 per equity share to such holders of FCCBs.
Bharti Airtel Ltd is a telecommunications company generating maximum revenue from the Mobile Services segment in the country. It includes the captive national long distance networks primarily providing connectivity to the mobile services business in India. The company also includes intra-city fiber networks.
Having a look at the financials of the company, the revenues as well as net profits increased on a QoQ basis. Revenues moved from Rs 34,527 crores in Q2 to Rs 35,804 crores in Q3. Net profits took a shift from Rs 2,622 crores in Q2 to Rs 2,982 crores in Q3.
The profitability ratios of the company have transitioned to the green with ROE moving from negative returns of 34.46 percent in FY20-21 to positive returns of 13.25 percent in FY21-22. ROCE numbers have moved from 0.31 percent in FY20-21 to 14.99 percent in FY21-22.
As per the recent data available for the quarter ending December 2022, promoters of the company hold a 55.12 percent stake. FIIs reduced their stake from 21.87 percent in Q2 to 21.7 percent in Q3.
Bharti Airtel got a ‘Buy’ tag from ICICI Securities with a target price of Rs 960 which is an upside of around 25 percent as compared to the current price levels.
Written by Amit Madnani
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