ICICI Direct is bullish on Bharti Airtel has recommended buy rating on the stock with a target price of Rs 700 in its research report dated July 31, 2020.
ICICI Direct's research report on Bharti Airtel
Bharti Airtel’s Q1FY21 performance was stable on the operating front. Key highlight was ARPU growth of ~1.8% at Rs 157 (vs. expectation of ~2% QoQ decline), in a challenging quarter coupled with continued expansion in India wireless margins. Consolidated revenue was at Rs 23939 crore, up 0.9% QoQ. Indian wireless revenues at Rs 12,877 crore, fell 0.6% QoQ while Africa revenues were down 0.6% QoQ at Rs 6451 crore. Consolidated EBITDA margins were at 43.5% (up 60 bps QoQ). The margin expansion was led by Indian margin, up 160 bps QoQ at 44.3% (we expected flattish margins) with Indian wireless margins at 40.6%, up 140 bps QoQ, largely a function of tariff hike pass through and cost control.
We maintain our BUY rating on the stock with a DCF based target price of Rs 700/share.
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