Bharti Airtel on July 28 announced revisions to its prepaid plans, raising its entry-level pricing by nearly 60 percent. The telecom operator has discontinued its Rs 49 entry-level prepaid recharge and minimum prepaid packs will now start from Rs 79, with up to four times more outgoing minutes of usage with double the data.
UBS | Rating: Buy | Target: Rs 655 | According to the broking firm, the plan tweaks to increase average revenue per user (ARPU). The 4 percent upside to revenues in an optimistic scenario., while EBIDTA acceleration is likely 6 percent due to plan tweaking. UBS expects Vodafone Idea to follow Bharti in tweaking plans.
Goldman Sachs | Rating: Buy | Target: Rs 665 | The tariff hike is the most significant catalyst since 2019. The plan tweaks will lead to +3%/+6% wireless revenue/EBITDA for the company, while there is high likelihood of Vodafone Idea following Bharti’s actions over the next few days.
Citi | Rating: Buy | Target: Rs 660 | There is another targeted hike in the low-end 2G segment, which could provide a further 2% benefit to mobile revenues. Citi estimate this segment contributes 5 percent to the company’s overall mobile revenues.
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