Moneycontrol Be a Pro
Get App
powered by
Maharashtra
BJP+ : 162
INC+ : 96

Need 49 more seats to win

Haryana
BJP : 35

Need 11 more seats to win

INC : 32

Need 14 more seats to win

*Wins + Leads
Last Updated : Feb 28, 2019 03:33 PM IST | Source: Moneycontrol.com

Buy Bharti Airtel; target of Rs 380: ICICI Direct

ICICI Direct is bullish on Bharti Airtel has recommended buy rating on the stock with a target price of Rs 380 in its research report dated February 04, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on Bharti Airtel


Consolidated revenues came in at Rs 20519 crore (vs. Rs 20543 crore), up 0.5% QOQ and largely driven by Africa revenues at Rs 5904 crore (4.5% QoQ growth, vs. 3.8% QoQ growth expectations) while India wireless revenue was at Rs 10189.4 crore, with ARPU of Rs 104 (exit ARPU of Rs 118). Marginal revenue miss was owing to weaker than expected Airtel non-wireless business. On India non-wireless front, homes services revenues were down 1.8% QoQ at Rs 550 crore (vs. flattish revenues expectations), Digital TV revenue witnessed muted growth of 0.9% QoQ (in line) while Airtel business witnessed a decline of 7% QoQ at Rs 3112 crore (vs. flattish revenue expectations) EBITDA came in at Rs 6,146 crore, a tad below our expectations of Rs 6277 crore, owing to higher access charges & marketing expenses. Consolidated EBITDA margins came in at 30% vs. our expectation of 30.6%, with India margins at 27.7% while India wireless margins slipped below 20% (at 19.9%) for the first time. Africa margins at 37%, were largely in line with our estimates Reported PAT came in at Rs 86.2 crore against our expectation of loss of Rs 475 crore aided by one-time gain of Rs 10,17 crore (net of tax), largely on account of deconsolidation of Airtel Payments Bank, which was partly offset by lower than anticipated tax credits.


Outlook


We believe that a marked improvement in wireless ARPU is still a few quarters away amid Jio’s continued intent to capture subscriber market share and opportunity for market share grab during Vodafone-Idea integration. We reiterate that despite the near term challenges in non-wireless segment, Airtel remains well placed to survive the tough times with multiple avenues (Africa IPO, Tower stake sale, etc) to deleverage and provide cashflow support. We maintain our BUY rating with a DCF based target price of Rs 380.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.




Assembly Election 2019 Results Updates:
Catch Maharashtra Election Result 2019 updates, news and views here
Catch Haryana Election Result 2019 updates, news and views here
Catch Bypoll Results 2019 updates, news and views here
For full coverage, click here.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Feb 28, 2019 03:33 pm
Loading...
Sections
Follow us on
Available On