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What should investors do with Bharti Airtel post-Q1 results: buy, sell or hold?

Bharti Airtel reported a net profit of Rs 284 crore and revenue of Rs 26,854 crore in the June quarter

August 04, 2021 / 09:34 AM IST
 
 
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Bharti Airtel share price shed over a percent in the early trade on August 4, a day after the telecom service provider posted consolidated net income (after exceptional items) of Rs 284 crore for the June quarter. The company had posted a loss of Rs 15,933 crore in the year-ago period.

The company’s revenue for the quarter came in at Rs 26,854 crore. EBITDA was at Rs 13,189 crore, while the EBITDA margin was at 49.1 percent during the quarter under review.

Here is what brokerages have to say about the stock and the company after the June quarter earnings:

Goldman Sachs | Rating: Buy | Target: Rs 675

Goldman Sachs forecasts the wireless segment to deliver 20 percent+ revenue and an EBITDA growth for the next two years. It expects Bharti Airtel’s India business to be FCF positive starting FY22.

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The broking firm raised FY22-24 EBITDA estimates by up to 2 percent and sees upside risks to its estimates on accelerated market share gains from Vodafone Idea.

UBS | Rating: Buy | Target: Rs 655

The average revenue per user (ARPU) was largely flat for both Bharti and Jio this quarter. However, any tweaks in tariffs to improve ARPUs and the response to recent plan changes would be the key monitorables.

Credit Suisse | Rating: Outperform | Target: Rs 750

The broking firm has kept the “outperform” call on the stock as the Q1 results were largely in-line, though India mobile a tad weaker.

It will look for management commentary on subscriber trends in Q2 and also look for views on “affordable” smartphone to be offered by Jio and 5G strategy.

CLSA | Rating: Buy | Target: Rs 730

CLSA has maintained a “buy” call on the stock as the 4G penetration at 57 percent of its India mobile subscribers and tariff hikes assure growth.

It forecasts a 17 percent CAGR in consolidated EBITDA by FY23.

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Citi | Rating: Buy | Target: Rs 660

The research house kept a buy call as Q1 revenue and EBITDA were ahead of estimates.

The India mobile revenue was in line and mobile EBITDA growth stronger at more than 5 percent QoQ. The mobile revenue growth should show an uptick in Q2.

At 0920 hours, Bharti Airtel was quoting at Rs 576.05, down Rs 4.15, or 0.72 percent on the BSE.

The share touched a 52-week high of Rs 623 on February 4, 2021 and a 52-week low of Rs 394.05 on October 19, 2020. It is trading 7.54 percent below its 52-week high and 46.19 percent above its 52-week low.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

 
Moneycontrol News
first published: Aug 4, 2021 09:34 am

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