Sharekhan has given Buy recommendation for Bharti Airtel with a target price of Rs. 910 in its research report issued on Nov 24, 2021
Sharekhan’s research report on Bharti Airtel
Bharti Airtel has hiked tariffs by 20-25% across prepaid plans after two years; move to drive 15% growth in consolidated EBITDA of Q2FY2022. Price hike to minimally impact monthly subscriber churn rate; possibilities of down-trading are also limited, given its quality customer base and efficient price plans. Tariff hike, steady 4G subscriber additions, continued increase in postpaid customer base and strong growth potential in non-wireless business to help EBITDA clock an 18% CAGR over FY2022-FY2024.
Outlook
We maintain a Buy on the stock with a revised PT of Rs. 910, led by the price hike, market share gains across its portfolio, improving FCF and reasonable valuation.