Dolat Capital Market's research report on Bharti Airtel
Bharti reported strong all-round beat in Q2FY21 across both India Wireless and Africa. A solid 14mn subscriber, 14.5mn 4G additions, 3.4% QoQ ARPU (computed 5.5%) in India Wireless and 5mn sub adds in Africa with 8.8% QoQ ARPU growth were key highlights. Other business segments too especially DTH reported healthy performance. Bharti’s strong business trajectory, reasonable valuations (~8/6.4x FY21/22E EV/EBITDA) should re-impose investor confidence and lead to reversal of some of its recent underperformance. While tariff increase is a welcome potential trigger and inevitable for a threeplayer market structure, Bharti is well-poised to gain market share and grow even in absence of the same.
In our view, Investors would be better-off not-losing the sight on long-term potential upsides for short-term delay in tariff hikes. Reiterate BUY with revised TP of Rs 663 @ 10/6x Sep-22E EV/EBITDA for India Wireless/Africa.
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