Anand Rathi has given Buy recommendation for Bharti Airtel with a target price of Rs. 886 in its research report issued on Nov 23, 2021
Anand Rathi’s research report on Bharti Airtel
Bharti Airtel Limited (BHARTIARTL) has reported consolidated revenue of Rs.2,83,264 million in Q2-FY22 as against Rs.2,50,604 million in Q2-FY21, a growth of 13%. On comparable basis the company’s revenues grew 18.8% YoY during the quarter backed by strong performance across the businesses. On profitability front, the company’s consolidated EBITDA margin stood at 48.8% at Rs.138 billion in Q2-FY22 as against 44.2% at Rs.110 billion in same quarter previous year, an improvement of 458 basis points. The consolidated profit after tax (PAT) margin for the company stood 4.3% at Rs.12.3 billion as against a loss of Rs.5.8 billion in same quarter previous year.
We continue to believe that strong momentum in revenue backed by continued growth in customer additions and improved margins support the growth prospects for the company in long term. Airtel’s strong brand presence coupled with its executional capabilities will help drive the top line growth and healthy margins. Maintaining a positive long-term outlook, we maintain our Buy rating on the stock with a revised target price of Rs.886 per share.