Shares of Bharti Airtel closed nearly 3 percent higher on Tuesday to become one of the top performers on the Nifty after Goldman Sachs raised its target price on the stock. While Vodafone Idea and Indus Towers also witnessed marginal movement in today's session, the brokerage remains bearish on both, slashing its projections for Indus Towers and maintaining a bleak outlook for Vodafone Idea.
Airtel also announced a partnership with Ericsson to deploy 5G Core solutions, supporting its transition to a full-scale 5G Standalone (SA) network over time.
Goldman Sachs bumped its target price for Bharti Airtel by 5 percent to Rs 1,780 from Rs 1,700, citing stronger revenue growth and better-than-expected earnings momentum. The brokerage sees a further upside of around 9.2 percent from current levels, driven by improved broadband subscriber growth and rising margins in the wireless business. It also pointed to Bharti’s disciplined capital expenditure and a strategic shift towards higher-margin segments as key positives.
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In stark contrast, Vodafone Idea remains under pressure, with Goldman Sachs reaffirming its "sell" rating—implying a sharp 70 percent downside from current levels. Despite the stock’s recent uptick to Rs 8.04, the brokerage trimmed its FY25-28 revenue and EBITDA estimates by up to 3 percent and 11 percent, respectively, citing weak subscriber additions and lacklustre tariff growth. It also flagged persistent financial strain hinder growth for the company.
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Indus Towers, too, saw a downgrade, with Goldman Sachs cutting its target price by 6 percent to Rs 330 from Rs 350, maintaining a "sell" rating. The brokerage acknowledged improved tenancies from Airtel and Vodafone Idea but cautioned that elevated capex for new infrastructure could weigh on free cash flow and profitability.
The BSE Telecom index rallied to 2,574, ending 0.66 percent higher. The index has tanked almost 10 percent since the start of the year.
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