Buy Bharti Airtel; Target Of Rs 700: ICICI Direct
ICICI Direct is bullish on Bharti Airtel recommended buy rating on the stock with a target price of Rs 700 in its research report dated October 29, 2020.
Nov 4, 2020 / 09:37 PM IST
ICICI Direct's research report on Bharti Airtel
Bharti Airtel reported yet another strong operating performance with beat on KPIs such as ARPU, subscriber addition and margins. Consolidated topline came in at Rs 25785 crore, up 7.7% QoQ, driven by Indian wireless revenues, which were up 7.4% QoQ at Rs 13832 crore, led by healthy net sub addition of ~13.9 million (mn) and ARPU growth of 3.4% QoQ at Rs 162. It also witnessed strong 4G net adds of ~14.4 mn during the quarter, with 4G data sub base at 152.7 mn. Africa revenues were up 11.1% QoQ at Rs 7166 crore. Consolidated EBITDA came in at Rs 11,642 crore, up 11.9% QoQ with margin of 45.2% (up 167 bps QoQ). Overall Indian margin was up 156 bps QoQ at 45.8% with Indian wireless margins at 42.6%, up 200 bps QoQ, largely a function of operating leverage.
Current valuations underestimate massive possibility of growth in a consolidated market and the resilience shown by Airtel so far. We maintain our BUY rating on the stock with a DCF based target price of Rs 700/share.
For all recommendations report, click here
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