CLSA has revised its target on one of the leading telecom companies with operations in 20 countries with an upside of 20 percent of Rs 1,110 a share.
On Thursday, Bharti Airtel Ltd shares closed at Rs 923.85, up 1.14 percent from the previous close on the National Stock Exchange.
The company’s share has delivered returns of 18 percent in six months and 12 percent in a year.
The Company’s Net profit margin increased from 5.04 percent in FY22 to 8.29 percent in FY23, while the operating margin rose from 21.43 percent to 25.71 percent during the same period.
Based on the company’s strong prospects, CLSA has revised its target price on Bharti Airtel from Rs 1,100 to Rs 1,110 a share, representing a 20% upside from Thursday’s close price of Rs 924.60, based on the company’s robust revenue and EBITDA performance.
The rationale behind providing such a recommendation is
● Bharti Airtel increased its mobile services average revenue per user (ARPU) to Rs 203 from Rs 190 in Q2 FY23. The Digital TV client base was 15.7 million in Q2 FY24.
● The company witnessed growth in home broadband and enterprise businesses.
● Bharti Airtel reported a 69 percent overall increase in mobile customer base in July-September with 4G/5G data customers up by 27.2 million on-year and up 7.7 million quarter-on-quarter.
Bharti Airtel reported a net profit of Rs 1,341 crore in the second quarter of fiscal year 2023-24 (Q2FY24), a 37 percent decrease from the previous year’s figure of Rs 2,145.2 crore.
The company’s revenue in the September 2023 quarter is Rs 34,527 crore, up 7 percent from Rs 37,044 crore the previous year.
Bharti Airtel’s Africa subscriber base has increased, while revenue fell 9.2 percent and EBITDA fell 8.7 percent to Rs 10,300 crore and Rs 51,000 crore, respectively, due to the Naira depreciation.
Bharti Airtel Ltd is one of the world’s leading providers of telecommunication service companies. The Company’s diversified service range includes mobile, voice, and data solutions, using 2G, 3G, and 4G technologies.
Written by Omkar Chitnis
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