Bharti Airtel share price gained 3 percent intraday on January 12 after research firm HSBC retained buy call on the stock.
The global research firm has retained buy rating on the stock and has raised the target to Rs 650 from Rs 570 per share. It is of the view that the key catalyst would be rise in Mobile ARPU adding that ARPU is to improve on high value subscribers and migration from 2G to 4G, according to a CNBC-TV18 report.
HSBC feels that potential tariff hikes in FY22 will also aid ARPU adding that spectrum supply is abundant in the upcoming auction. It expects Bharti Airtel to invest Rs 9,800 crore and industry to skip 700 MHz.
The stock was trading at Rs 564.60, up Rs 17.50, or 3.20 percent. It has touched an intraday high of Rs 564.90 and an intraday low of Rs 545.10.
The stock price has been in focus after the telecom major received almost all regulatory approvals required to raise foreign direct investment (FDI) in its downstream companies. According to sources, Bharti Airtel has got approval to raise FDI in its payments bank from the Reserve Bank of India (RBI) and the Foreign Investment Promotion Board (FIFB), the nodal agency. According to RBI guidelines, the payments bank can raise FDI up to 74 percent.
The company also appointed Pradipt Kapoor as its Chief Information Officer (CIO).
Domestic research firm Axis Securities has a buy rating on Bharti Airtel with a target of Rs 676 per share.
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