What should investors do with Bharti Airtel after Q3 results; buy, sell or hold?

India business revenues grew 5.1 percent on-quarter to Rs 20,912 crore. The India business also reported a 5.6 percent on-quarter rise in operating profits to Rs 10,406 crore.

The African business reported strong growth as revenues rose 6 percent sequentially to Rs 9,105.3 crore in the reported quarter. The arm's operating profit also grew 8.3 percent on-quarter to Rs 4,519 crore.

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Here is what brokerages have to say about the stock and the company after December quarter earnings:

CLSA

Broking house has kept a buy rating on the stock with a target at Rs 915 as both revenue and EBITDA came above estimates.

It has lifted revenue and EBITDA forecasts 1-4% but cut FY22 profit and forecast a 15% consolidated EBITDA compound annual growth rate (CAGR) by FY24.

Jefferies

The research firm has maintained a buy rating with a target price at Rs 910.

A 6% on-quarter rise in India mobile ARPU (average revenue per user) is a positive surprise. The subscriber mix improved further; a reflection of network investments.

The homes, enterprise segment and Africa also surprised positively. The FCF (free cash flow) generation was strong and leverage was at a comfortable 2.7x.

The research firm raised revenue/EBITDA estimates by up to 2% and expects the company to deliver 20% EBITDA CAGR over FY22-24.

Goldman Sachs

The broking house has maintained buy rating with a target at Rs 885 as Q3 earnings were in line with high earnings visibility. It was another quarter of market share gains.

The revenue market share has now expanded 275 bps over last 4 quarters.

The Broking house forecast wireless segment to deliver 21%/35% FY22-24 revenue/EBITDA CAGR.

The digital asset scale-up, improving balance sheet profile should help multiples rerate higher.

Nomura

The research house has maintained a buy call on the stock with a target price at Rs 855 on the back of good Q3.

The higher ARPU drives further market share gains, while capex declined QoQ.

Revenue and subscriber market share inched up 65 bps and 45 bps, QoQ, respectively. The subscriber mix continues to improve, despite muted reported subscriber additions.

At 09:18 hrs Bharti Airtel was quoting at Rs 705.80, down Rs 3.05 or 0.43 percent on the BSE.

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