Bharti Airtel Share Price: Shares are Falling, Should You Buy?

Bharti Airtel recently announced nearly 164% on-year surge in consolidated net profit at Rs 2,007.8 crore for quarter ended March 2022 as a result of the strong tariff hike announced by India mobile business in 2021 financial year. The decision helped in boosting the average revenue per user or ARPU, one-time gains, and strong user additions, according to reports.

Airtel has also posted the highest average revenue per user or ARPU growth in March Quarter surging to 178 from 163 in the quarter to December when compared with its peers, according to Economic Times report.

1. Moody's upgraded ratings for Bharti Airtel

Leading Rating Agency Moody's has on Thursday upgraded ratings of Bharti Airtel Ltd's senior unsecured debt from "Ba1 to "Baa3". Moody has also changed the outlook on the ratings to stable from positive. After assigning Baa3, the rating agency has withdrawn the Ba1 corporate family rating or CFR.

2. Should you buy Bharti Airtel shares?

Bharti Airtel shares ended with a gain of 0.73% at 693.35 apiece on BSE on Thursday. Today the share of Bharti Airtel on NSE is trading at Rs 688.55 apiece with a loss of 0.73% at the time of writing this report. It is important to note that Bharti Airtel Shares have registered a dip of more than 2% ever since it has reported a jump of 164% in it consolidated net profit. And, the shares have corrected 1.32% so far the current financial year. However, the shares have outclassed NSE Nifty 50 that has tanked more than 8% , according to a report in Financial Express. Analysts believe that the stock of Airtel has the potential to rally nearly 30% as they expect operating earning CAGR of 18% in the coming two financial years, added the Financial Express report. Meanwhile leading financial services company Motilal Oswal in its March report has given a buy call for Bharti Airtel shares with a target price of Rs 910.
Award winning brokerage firm CLSA has also given a buy call a week ago for the shares of Airtel with a target price of Rs 953 apiece.
It is important to note that Bharti Airtel shares have hit a 52-week high of Rs 781.90 and a 52-week low of Rs 509.36. The shares have hit an upper price band of Rs 762.65 and lower price band of 624.05. Therefore, if we take the current market price Rs 688.55 and expected target price of Rs 953, there is a potential gain of 38.41%.

3. About Bharti Airtel Limited

It is a renowned global telecommunications company and operating in 18 countries all over Asia and Africa. It is headquartered in New Delhi.Bharti Airtel has been ranked amongst the top 3 mobile service providers globally in terms of subscribers. In India, it offers 2G, 3G and 4G wireless services, mobile commerce, fixed line services, high speed home broadband, DTH, enterprise services including national & international long-distance services to carriers, according to its official website. In the rest of the geographies, Bharti Airtel offers 2G, 3G, 4G wireless services and mobile commerce. The company had more than 403 million customers across its operations at the end of March 2019.