This stock can gain strongly in the short term, highest subscriber additions reported: check profile

0

Target Price, CMP and Performance of Airtel

The current market price (CMP) of Bharti Airtel is Rs. 696. Emkay Global has estimated a target price for the stock at Rs. 850. The stock is expected to yield 22.10% in 1 year. Although the stock market is currently heavily bearish, the target price has been set for the next year, expecting the stock to experience a strong rally with robust revenue growth over the next few quarters.

Stock market outlook
Current market price (CMP) Rs.696
Target price Rs.850
1 year back 22.10%

Bharti Airtel recorded another quarter of stable performance in Q4, with wireless ARPU in India growing 9.7% quarter on quarter to Rs. 178, boosted by the November 21 tariff hike. The report informs that 4G subscriber additions were also robust at 5.2 million, underscoring the superiority of its network. On the non-wireless front, home broadband grew 10% QoQ on strong customer additions. Business growth was steady, but DTH was under pressure.

Bharti reported consolidated revenue of Rs. 315 billion, up 5.5% year-on-year, driven by wireless business in India. The addition of 4G subs, at 5.2 million, was also robust. Consolidated EBITDAM increased 169 basis points quarter-on-quarter to 50.9% on operating leverage. The momentum in the domestic broadband business continued, with revenue up 10% q/q. Enterprise revenue growth was flat at 1.8% quarter-on-quarter.

Stock Market Outlook and Benefits: Emkay Global Stated

Stock Market Outlook and Benefits: Emkay Global Stated

The brokerage firm suggested buying Airtel shares with an improved target price, saying, “Going forward, data subscriber addition momentum, 5G auction outcome and potential timing further price increases will be the main things to watch The current inflationary scenario limits customer upgrades as the cost of entry-level smartphones has increased Our EBITDA estimate is 15% CAGR growth in fiscal year 22-24.”

Emkay Global added, “The company’s focus on the non-wireless business has resulted in strong revenue growth. Given strong earnings visibility, a potential price hike and deleveraging, the stock should remain a defensive play in currently weak markets as we believe the impending 5G auction will limit any meaningful upside. short term. We have not factored in our estimates another round of price hikes (due to a lack of clarity on timing) and the purchase of 5G spectrum.

However, delays in raising wireless rates; currency depreciation in African markets; 5G capital expenditure higher than expected; and a further increase in the stake in Indus Towers remain the main risks. Cash generation in Q4 was impacted by the reduction in trade payables and other assets and liabilities, etc.

About the company: Bharti Airtel

About the company: Bharti Airtel

Bharti Airtel is a leading global telecommunications company with operations in 18 countries across Asia and Africa. Based in New Delhi, India, the company ranks among the top 3 mobile service providers in the world in terms of subscribers. In India, the Company’s product offerings include 2G, 3G and 4G Wireless Services, Mobile Commerce, Fixed Line Services, Home Broadband, DTH, Business Services including Long Term Services. national and international distance to operators.

However, alongside the company’s promising fourth quarter results, its DTH segment disappointed with a 4.6% QoQ decline in revenue. Wireless investment in India fell 12% qoq after a 36% qoq drop in the third quarter, while overall investment was only slightly lower qoq. The net exceptional gains amounted to 1.5 billion rupees (Exhibit 2). In Q1FY23, Bharti’s cash flow is expected to reflect dividend proceeds from Indus Towers.

(Also Read: Stocks to Buy: Anand Rathi Suggests Buying This Stock, Revenues Rise to Rs. 4.9 Billion, Merger Approved)

Warning

Warning

The stock above was selected from Emkay Global’s brokerage report. Investing in stocks presents a risk of financial loss. Investors should therefore exercise caution. Greynium Information Technologies, the author, and the brokerage are not responsible for any losses caused as a result of decisions based on the article.

Share.

Comments are closed.