ICICI Direct has given Buy recommendation for Bharti Airtel with a target price of Rs. 730 in its research report issued on Feb 05, 2021
ICICI Direct’s research report on Bharti Airtel
Bharti Airtel reported yet another strong operating performance with beat on KPIs such as ARPU, subscriber addition and margins. Consolidated topline came in at Rs 26,518 crore, up 5.8% QoQ on a like to like basis, driven by Indian wireless revenues, which were up 6.8% QoQ (32.4% YoY) at Rs 14,779 crore, with ARPU growth of 2.4% QoQ at Rs 166 and strong net sub addition of ~14.2 million. Africa revenues were up 6.7% QoQ at Rs 7644 crore. Consolidated EBITDA came in at Rs 12,053 crore, up 8.9% QoQ on comparable basis with margin of 45.5% (up 128 bps QoQ). Overall Indian margin was up 78 bps QoQ at 45.2% with Indian wireless margins at 42.6%, up 110 bps QoQ, largely a function of operating leverage.
We maintain our BUY rating on the stock with a revised DCF based target price of Rs 730/share (earlier Rs 700/share).
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