Bharti Airtel Stock Falls 5% Today Due To This Reason

The shares of Bharti Airtel has fallen today nearly 5% after reports emerged that Adani Group may soon make his foray into the telecom sector which may cause yet another upheaval in the share market.

Recently, an Adani Group entity has joined the competition to acquire the 5G telecom spectrum which will pitch it directly against Mukesh Ambani's Reliance Jio and telecom czar Sunil Bharti Mittal's Airtel, sources told news agency PTI.

Applications for participating in the 26 July auction of airwaves, including those capable of providing fifth-generation or 5G telecom services such as ultra-high-speed internet connectivity, closed on Friday, 8 July with at least four applications. The fourth applicant is Adani Group, one of the sources said, adding that the group had recently obtained National Long Distance (NLD) and International Long Distance (ILD) licences, added the PTI report.

Amid these reports, the shares of Bharti Airtel tanked 4.98%. The current market price of Bharti Airtel is Rs 660.55 apiece at the close of today's trade. It has touched the 52-week high at Rs 781.80 apiece and 52-week low at Rs 513.36 apiece. Its market capitalization today stands at Rs 3,69,254 crore. After today's decline of nearly 5% the shares of Bharti Airtel are now trading at a discount of 34.34% from the highs.

The PE of Bharti Airtel is 86.80 which very high than sector PE of 14.39. The high PE is also one of the threats for the stock. The key strengths of the stock include its high TTM EPS growth. Brokers have also upgraded the recommendations or target price for the stock. The dividend yield is 0.45%.

In the last 3 months the stock of Bharti Airtel has fallen 12.86% while in 6 months, it has fallen 6.1%. It has given a return of 23% in 1- year and a return of 66.34% in 5 years. The company's annual revenue growth of 15.63% has outperformed its 3 year CAGR of 12.4%.

Bharti Airtel Ltd is Asia's leading integrated telecom services provider with operations in India and Sri Lanka. It has been at the forefront of the telecom revolution and has transformed the sector with its world-class services built on leading edge technologies.