Motilal Oswal has given Buy recommendation for Bharti Airtel with a target price of Rs. 720 in its research report issued on Feb 04, 2021

Motilal Oswal’s research report on Bharti Airtel

Bharti Airtel (BHARTI) displayed a good performance in 3QFY21 for the second quarter in a row, with a consol. EBITDA jump of 9% QoQ (5% beat). This was attributable to strong market share gains and ARPU improvement, aided by operating leverage in Mobile India. The Africa business also continued its good run. We marginally raise our FY22E consol. EBITDA, factoring in steady 20% EBITDA growth in FY22 over a stellar 28% growth in FY21. We roll over the valuation to FY23, revising TP to INR720 (INR650 earlier). Maintain Buy.

Outlook

We roll over the valuation to FY23E, assigning EV/EBITDA of 10x to the India Mobile business and 6x to the Africa business, arriving at an SOTP-based TP of INR720.

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