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Buy Bharti Airtel; target of Rs 850: Sharekhan

Sharekhan is bullish on Bharti Airtel has recommended buy rating on the stock with a target price of Rs 850 in its research report dated August 08, 2022.

August 11, 2022 / 03:35 PM IST
 
 
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Sharekhan's research report on Bharti Airtel


Revenue was in-line with estimates despite slower 4G subscriber additions, while margin missed estimates. Q1 saw healthy growth in ARPU, continued rise in Home, strong FCF, reduction in net debt and market share gain in enterprise business. We believe Airtel is well-positioned to capture maximum benefit from the 5G rollout over next few years given its astuteness in spectrum acquisition approach. Its large low and mid- band spectrum pool gives the company a benefit of 50% over the current cost per GB (based on the price of 700 MHz band in the recent spectrum auction). We forecast the company’s EBITDA would report a 23% CAGR over FY2022-FY2024E on the back of strong revenue growth, potential tariff hikes, steady increase in 4G subscriber base, and higher postpaid subscriber mix.



Outlook


We maintain a Buy with a revised PT of Rs. 850, owing to strong FCF generation, robust growth potential, market share gain in its key portfolios and reasonable valuation.

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Bharti Airtel - 100822 - khan

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first published: Aug 11, 2022 03:35 pm
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