What should investors do with Bharti Airtel post Q3 results? Brokerages see 20-30% return
Most global brokerage firms maintained their rating on Bharti Airtel post December quarter results after the telecom major reported a decline of 26.8 per cent on a QoQ basis in the consolidated profit at Rs 830 crore for the quarter ended December 31, 2021.
Most global brokerage firms maintained their rating on Bharti Airtel post December quarter results after the telecom major reported a decline of 26.8 per cent on a QoQ basis in the consolidated profit at Rs 830 crore for the quarter ended December 31, 2021.
It had posted a profit of Rs 1,134 crore posted in the previous quarter ended September 30, 2021.
The most aggressive target price of Rs 915 was put out by CLSA which translates into an upside of over 29 per cent from Rs 709 recorded on 8 February.
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Revenue from operations grew by 5.4 per cent on a QoQ basis to Rs 29,867 crore against Rs 28,326 crore posted in the September 2021 quarter.
EBITDA stood at Rs 14,703 crore, up 6.5 per cent from Rs 13,819 crore posted in the previous quarter. The EBITDA margin grew marginally to 49.2 per cent in Q3FY22 against 48.8 per cent posted in Q2FY22.
Airtel's average revenue per user (ARPU) was Rs 163 for the third quarter, up from Rs 153 in the previous quarter. The company has reported an exceptional gain of Rs 722 crore last quarter.
Enterprise, Homes, and Africa business continue to deliver strong, with a steady increase in contribution to the overall mix of the portfolio.
We have collated a list of recommendations from various global brokerage firms according to a Zee Business TV report:
CLSA: Buy| Target Rs 915
CLSA maintained a buy rating on Bharti Airtel post December quarter results with a target price of Rs 915 which translates into an upside of nearly 30 per cent from Rs 709 recorded on 8 February.
Consolidated revenue was up 5 per cent on a QoQ basis, and 18 per cent on a YoY basis on a comparable basis while EBITDA was up 6 per cent on a QoQ basis and 22 per cent on a YoY basis -- both beat estimates.
Bharti Airtel gained 3 mn QoQ, and 30m YoY 4G data subscribers & ARPU of Rs163 was up 6 per cent on a QoQ basis.
The global investment bank forecasts 15 per cent consolidates EBITDA CAGR by FY24CL.
Jefferies: Buy| Target cut to Rs 910 from Rs 925
Jefferies maintained a buy rating on Bharti Airtel post December quarter results but slashed its target to Rs 910 from Rs 915 earlier which still translates into an upside of over 28 per cent from Rs 709 recorded on 8 February.
The company reported 6% QoQ rise in India mobile ARPUs which is a key positive surprise. Subscriber mix improved further in Q3.
Homes, enterprise segment & Africa also surprised positively. Free Cash Flow (FCF) generation remains strong and leverage at 2.7x is comfortable, said the note.
Nomura: Buy| Target Rs 855
Nomura maintained a buy rating on Bharti Airtel post December quarte results with a target price of Rs 855 that translates into an upside of over 20 per cent from Rs 709 recorded on 8 February.
The company reported a good 3Q. Higher ARPU drives market share gains, and a relatively better show from Homes & Africa is key positive.
Among 3 private telcos, Bharti Airtel’s revenue and subscriber market share inched up by 65bp and 45bp on a QoQ basis respectively.
Goldman Sachs: Buy| Target Rs 885
Goldman Sachs maintained a buy rating on Bharti Airtel with a target price of Rs 885 which translates into an upside of over 24 per cent from Rs 709 recorded on 8 February.
The telecom major reported in-line Q3. It was another quarter of market share gains. Revenue market share now expanded 275 bps over the last 4 quarters.
The global investment bank forecasts the wireless segment to deliver 21%/35% FY22-22 revenue/EBITDA CAGR.
Digital asset scaled-up and improvement in B/S profile should help multiples rerate higher, said the note.
(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
09:47 AM IST