Brokerage Assigned Buy Call On This Telecom Stock For Robust Returns, Target Price Rs 970

ICICI Securities upgrades the rating given to Bharti Airtel Ltd. from hold to buy with a revised target price of Rs 970 per share. With the brokerage's estimated target price, the stock is likely to give a return of up to 15% in. It is the second largest telecom company in India with pan-India presence. It is a large cap company with a market capitalisation of Rs 4,99,195 crore.

Bharti Airtel Stock & Returns

The current market price (CMP) of Bharti Airtel as on 24 November is Rs 848.35 apiece on NSE. Its 52-week high level was recorded on 22 November 2022 at Rs 860.55, and the 52-week low level is Rs 628.75, recorded on 14 July 2022, respectively.

The stock over the past 1 month surged by 5.77%. In 3 months, it surged by 14.84%, whereas, in the past 1 year it surged by 11.798%. Over the past 3 years, it gave a massive 101.68% positive returns. Whereas, in 5 years, it gave 70.76% positive returns.

Bharti makes a stunning move!

According to the brokerage, Bharti Airtel (Bharti) has embarked on a market-testing tariff hike in Haryana and Odisha circles - and the move has just added a huge upside risk to our estimates. Company has withdrawn its offering of Rs99 recharge coupon which used to be valid for 28 days (entry pack). Now the minimum recharge pack in the two circles is priced Rs155 which offers unlimited voice, 1GB data and 300 SMSs. This is indeed a bold move and the tariff hike quantum is beyond our best-case scenario. It shows Bharti's strong urge to drive ARPU to Rs300 (from Rs190 in Q2FY23) and that the move is not just another for the bucket-list. "This is also a message / offer to competition that - Bharti is ready to walk-the-talk on tariff hikes. The development leads us to increase our EV/EBITDA multiple for the company's India business to 11.5x FY24E (earlier: 10.5x). Accordingly, we raise our target price for the stock to Rs970 (earlier: Rs875). Upgrade to BUY (from Add). Our earlier one-notch downgrade was in fear of depleting FCF generation on 5G capex, and lower belief in likelihood of tariff hike, which has now been addressed," the brokerage has said.

Disclaimer

The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before making any investment decision.