Moneycontrol
Feb 08, 2018 05:45 PM IST | Source: Moneycontrol.com

Buy Bharti Airtel; target of Rs 600: Sharekhan

Sharekhan is bullish on Bharti Airtel has recommended buy rating on the stock with a target price of Rs 600 in its research report dated January 19, 2017.

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Sharekhan's research report on Bharti Airtel


Consolidated revenue of Bharti Airtel (Airtel) declined by 6.6% on a sequential basis (down 12.7% y-o-y) to Rs. 20,388 crore in  Q3FY2018. The decline in overall revenue was  mainly due to the ongoing tariff war with RJio and  a 8.6% q-o-q/15.1% y-o-y drop in India business,  which is partially being offset by 2.4% q-o-q (flat  y-o-y) revenue growth in African business and  decent growth (2.0% q-o-q/6.3% y-o-y) in non-India  wireless business (home, digital TV, enterprise  business and infrastructure services). Revenue of the India wireless business declined by 12.2% q-o-q/22.2% y-o-y to Rs. 10,751 crore (below our estimates), owing to cut in IUC rates (57% cut in IUC to 6 paise a minute, effective October 1, 2017) by  the regulator. Slash in IUC rates impacted revenue by Rs. 1,061.5 crore, resulted in ARPU decline of Rs. 16. ARPU for the quarter declined by 15.2%  q-o-q/28.6% y-o-y to Rs. 123, owing to competitive  tariff to retain revenue market shares and IUC  rate cut. India mobile voice traffic increased by 13.1% q-o-q/49.8% y-o-y to 495 billion minutes.  India data usage on its network grew by 41% q-o-q/544% y-o-y in Q3FY2018, while usage per customer grew by 31% q-o-q/450% y-o-y to 5.3 GB per customer.


Outlook
We maintain our Buy rating on the stock with an unchanged price target of  Rs. 600.


For all recommendations report, click here


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