 "Eight-day rally takes Airtel's m-cap over Rs 9.5 trn; stock hits new high")
Market capitalisation of telecom service provider Bharti Airtel crossed Rs 9.5 trillion after the company's stock price hit a new high of Rs 1,602, gaining 2.3 per cent on the Bombay Stock Exchange (BSE) in Friday’s intra-day trade.
The combined market cap of Bharti Airtel (Rs 9.1 trillion) and Bharti Airtel’s partly paid shares (Rs 46,800 crore) stood at Rs 9.57 trillion at 11:04 AM, data from the BSE showed.
Airtel is quoting higher for the eighth straight trading day, having rallied 11 per cent during the period. The stock has rebounded 31 per cent from its low of Rs 1,224 that it hit on the BSE, in June this year.
The Supreme Court of India (SC) is scheduled to hear the curative petitions filed by telecom majors Bharti Airtel and Vodafone Idea in the adjusted gross revenue (AGR) case, today, Friday, August 30, according to reports.
Airtel is a global communications service provider, with over 550 million customers spread across 17 countries in South Asia and Africa. The company ranks amongst the top three mobile operators globally, while its networks provide coverage to over two billion people around the world.
Airtel is India’s largest integrated communications solutions provider and the second largest mobile operator in Africa. The company’s retail portfolio includes high speed 4G and 5G mobile broadband; Airtel Xstream Fiber that promises speeds of up to 1 Gbps, with convergence across linear and on‐demand entertainment; streaming services spanning music and video; along with digital payments and financial services.
Moreover, analysts expect that the recently announced tariff hike (between 15 and 20 per cent) for the company's India wireless service will be a key revenue growth driver for Airtel going ahead. The company's Homes segment is also seeing robust growth momentum led by growing demand for fixed broadband.
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The company maintains a strong focus on quality customers with increasing average revenue per user (ARPU) and overall revenue. Furthermore, the company's management is confident of gaining industry leading growth, backed by its robust rural penetration play and a superior services portfolio. The company's capital expenditure, however, will remain moderate in FY25, analysts noted.
“It (Bharti Airtel) is witnessing healthy growth momentum in segments such as India wireless and Homes. Higher 4G addition continues to drive growth in ARPU. We expect growth in ARPU led by the recent tariff hike to be a key revenue growth driver over FY24-FY26E, and it will also drive expansion in operating margin over the period,” analysts at Centrum Broking stated.
The stock has achieved the brokerage firm’s target price of Rs 1,577 per share.
The stock has achieved the brokerage firm’s target price of Rs 1,577 per share.
Meanwhile, Axis Securities has a ‘Buy’ rating on Airtel, with a target price of Rs 1,660 per share.
From a long-term perspective, the brokerage firm believes Airtel would continue to gain market share, backed by its rural penetration play that is amongst the higher across peers, comined with the company's minimal capex requirements.
Further, based on the company's strong digital portfolio that is supported by rising per-user data, Axis Securities is positive about the company’s future growth prospects.
From a long-term perspective, the brokerage firm believes Airtel would continue to gain market share, backed by its rural penetration play that is amongst the higher across peers, comined with the company's minimal capex requirements.
Further, based on the company's strong digital portfolio that is supported by rising per-user data, Axis Securities is positive about the company’s future growth prospects.
While Airtel has the leading ARPU compared to its peers, management expects its ARPU to improve from the current level of Rs 211 due to a richer customer mix.
Aided by strong customer conversion from 2G to 4G/5G and other services, the company continues its ARPU growth trajectory and expects it to reach Rs 300 going forward.
The company's management has also highlighted the early signs of transmission, with modest SIM consolidation at the lower end, which is encouraging for the company. However, full flow through will take two quarters, Axis Securities said in its result update for the company.
Aided by strong customer conversion from 2G to 4G/5G and other services, the company continues its ARPU growth trajectory and expects it to reach Rs 300 going forward.
The company's management has also highlighted the early signs of transmission, with modest SIM consolidation at the lower end, which is encouraging for the company. However, full flow through will take two quarters, Axis Securities said in its result update for the company.