Motilal Oswal 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 01, 2019.
Motilal Oswal's research report on Bharti Airtel
Bucking the downtrend of the last four quarters, consol. EBITDA came in flat QoQ in 3QFY19. The quarter was characterized by deceleration in the sequential decline in India wireless EBITDA (9% v/s 22% in the previous quarter) and continued robust growth in Africa EBITDA (+5% QoQ). Notably, the strategy of minimum recharge plans appears to be working well, with an 18% QoQ increase in India wireless ARPUs v/s a 15% drop in wireless subscribers; management indicated that Dec-18 exit revenues were even better. Africa business, too, is on a strong footing, with healthy 4% QoQ revenue growth in USD (CC) and multiple levers of growth at play. Adj. net loss stood at INR10.4b (v/s INR9.7b in 2Q). For 9MFY19, revenue/EBITDA declined 5%/17% YoY.
It also indicates BHARTI has built capabilities to tackle competition and manage exponential data growth. Maintain Buy with SOTP-based TP of INR380.
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