Sharekhan is bullish on Bharti Airtel has recommended buy rating on the stock with a target price of Rs 600 in its research report dated January 19, 2017.
Sharekhan's research report on Bharti Airtel
Consolidated revenue of Bharti Airtel (Airtel) declined by 6.6% on a sequential basis (down 12.7% y-o-y) to Rs. 20,388 crore in Q3FY2018. The decline in overall revenue was mainly due to the ongoing tariff war with RJio and a 8.6% q-o-q/15.1% y-o-y drop in India business, which is partially being offset by 2.4% q-o-q (flat y-o-y) revenue growth in African business and decent growth (2.0% q-o-q/6.3% y-o-y) in non-India wireless business (home, digital TV, enterprise business and infrastructure services). Revenue of the India wireless business declined by 12.2% q-o-q/22.2% y-o-y to Rs. 10,751 crore (below our estimates), owing to cut in IUC rates (57% cut in IUC to 6 paise a minute, effective October 1, 2017) by the regulator. Slash in IUC rates impacted revenue by Rs. 1,061.5 crore, resulted in ARPU decline of Rs. 16. ARPU for the quarter declined by 15.2% q-o-q/28.6% y-o-y to Rs. 123, owing to competitive tariff to retain revenue market shares and IUC rate cut. India mobile voice traffic increased by 13.1% q-o-q/49.8% y-o-y to 495 billion minutes. India data usage on its network grew by 41% q-o-q/544% y-o-y in Q3FY2018, while usage per customer grew by 31% q-o-q/450% y-o-y to 5.3 GB per customer.
We maintain our Buy rating on the stock with an unchanged price target of Rs. 600.
For all recommendations report, click here
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