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Bharti Airtel share price hits 52-week high after Moody's raise outlook to positive

The company added 2.74 lakh mobile subscribers in September, raising the Airtel user base to 35.44 crore, from 35.41 crore in August.

November 24, 2021 / 09:27 AM IST
Moody's Investors Service revised Bharti Airtel  and its subsidiary Bharti Airtel International (Netherlands) BV's ratings outlook to positive from stable.

Moody's Investors Service revised Bharti Airtel and its subsidiary Bharti Airtel International (Netherlands) BV's ratings outlook to positive from stable.

 
 
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The Bharti Airtel share price touched a 52-week high of Rs 765 in the early trade on November 24 – a day after Moody’s Investors Service revised the company’s ratings outlook to positive.


Moody’s on November 23 raised the ratings outlook for Bharti Airtel Ltd (Bharti) and its subsidiary Bharti Airtel International (Netherlands) BV from stable.


“The outlook change to positive reflects Bharti’s improving operating performance and credit metrics which, if sustained, could support an upgrade to investment grade within the next 12-18 months,” Moody’s Senior Vice-President Annalisa Di Chiara said.


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“The continued expansion in profitability, particularly at its core Indian mobile business, together with a steady reduction in its balance sheet debt, is needed to mitigate the potential effect on Bharti’s credit metrics of significant investments in 5G and the compounding growth of deferred liabilities during the moratorium period,” said Chiara, Moody’s lead analyst for Bharti.

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On November 22, the company announced revised mobile tariffs for its prepaid plan with a 20-25 percent hike effective November 26. The company added 2.74 lakh mobile subscribers in September, according to data released by telecom regulator TRAI on Monday.


The subscriber base of Airtel stood at 35.44 crore in September as against 35.41 crore in August.


Broking house Anand Rathi maintained a positive long-term outlook ‘buy’ rating on the stock with a revised target price of Rs 886 per share. “We continue to believe that strong momentum in revenue, backed by continued growth in customer additions and improved margins, support the growth prospects for the company in the long term,” it said.


Airtel’s strong brand presence coupled with its executional capabilities will help drive the topline growth and healthy margins, the broking house said.

At 9:17am, Bharti Airtel was quoting at Rs 762.80, up Rs 3.30, or 0.43 percent, on the BSE.

Moneycontrol News
first published: Nov 24, 2021 09:27 am

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