Buy Bharti Airtel; target of Rs 1711: Geojit Financial Services

Geojit Financial Services is bullish on Bharti Airtel has recommended buy rating on the stock with a target price of Rs 1711 in its research report dated November 20, 2024.

Broker Research

November 20, 2024 / 12:54 IST

Buy

live

bselive
nselive

Volume

Todays L/H

Geojit Financial Services research report on Bharti Airtel

Bharti Airtel Ltd (Airtel) is a leading global telecommunications company with operations in 15 countries spanning Asia and Africa. The company had ~563mn customers as of Q2FY25. In Q2FY25, consolidated revenue increased 12.0% YoY to Rs. 41,473cr, aided by strong revenue from India and growth in constant currency in Africa. Revenue from India rose to Rs. 31,561cr, up 16.9% YoY, owing to 18.5% YoY revenue growth in mobile services, supported by tariff hike and focus to premiumise the portfolio with quality customers. Revenue of Airtel business and homes services rose 10.7% and 17.3% YoY to Rs. 5,656cr and Rs. 1,432cr, respectively. ARPU rose to Rs. 233, compared with Rs. 203 in Q2FY24. Total customer base increased to 563 million, up 4.3% YoY. EBITDA rose 12.0% YoY to Rs. 21,846cr, while margin remained flat at 52.7% due to higher selling, marketing and distribution expenses. Reported PAT grew 98.4% YoY to Rs. 4,153cr, aided by higher topline, significant drop in exceptional items, and partly dented by higher deferred tax.

Outlook

Additionally, the company has deployed artificial intelligence technology to offer superior service to customers, which may improve its overall customer base. Thus, we reiterated our rating on the stock to BUY, with a revised target price of Rs. 1,711 based on the SOTP methodology.

For all recommendations report, click here