Buy Bharti Airtel; target of Rs 400: ICICI Direct
ICICI Direct is bullish on Bharti Airtel recommended buy rating on the stock with a target price of Rs 400 in its research report dated August 05, 2019.
Aug 8, 2019 / 12:38 PM IST
ICICI Direct's research report on Bharti Airtel
The key takeaway from Bharti Airtel’s Q1FY20 performance was stable KPI prints across the business segments. Consolidated revenues (excluding Ind-AS 116 and DTH revenues re-alignment) at Rs 21147 crore, was up 2.6% QOQ with healthy 2.2% QoQ growth in India wireless revenues and 2.6% QOQ growth in Africa revenues at US$802 million (in constant currency). Consolidated EBITDA margins at 33.7% were largely driven by superior India margins at 31.4%, up 90 bps QoQ while Indian wireless EBITDA margins were up 100 bps QoQ to 23.2%, on an adjusted basis.
We now incorporate the Ind-AS 116 effect and Tata Tele customers/revenues base in our estimates. With resilient performance amid challenging times for second consecutive quarter, we now upgrade it to BUY (vs. HOLD earlier) with a DCF based target price of Rs 400/share.
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