Emkay Global Financial has given Buy recommendation for Bharti Airtel with a target price of Rs. 850 in its research report issued on May 18, 2022

Emkay Global Financial’s report on Bharti Airtel

Q4 marked yet another steady quarter for Bharti Airtel, with India wireless ARPU growing 9.7% qoq to Rs178, boosted by the Nov’21 tariff hike. Subscriber additions, at 3.1mn, exceeded our estimate of 2mn, and were also the highest among telcos. 4G subscriber additions were also robust at 5.2mn, underscoring the superiority of its network. On the non-wireless front, Home broadband saw 10% growth qoq on strong customer adds. Enterprise business’s growth was steady, but DTH was under pressure. On expected lines, Africa performance was muted due to seasonality. Going forward, data subscriber addition momentum, the 5G auction outcome and the potential timeline for further tariff hikes will be the key things to watch out.


The current inflationary scenario is restricting customer upgrades as the cost of entry-level smartphones has risen. Our EBITDA estimates remain unchanged, with a 15% CAGR over FY22-24. Retain Buy with a revised SoTP based Jun’23 TP of Rs850 (Rs825 earlier).

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