After the quarterly results, the stock of Airtel has become the choice of many leading brokerage houses together. The brokerage house says that the company’s profit has decreased by 3 percent in the December quarter, but there has been a good growth in ARPU.
Airtel Stock Price: After the quarterly results, there is a slight rise in the shares of telecom giant Airtel. In today’s trading, the stock has strengthened and has reached a price of Rs 712. After the quarterly results, the stock of Airtel has become the choice of many leading brokerage houses together. The brokerage house says that the company’s profit has decreased by 3 percent in the December quarter, but there has been a good growth in ARPU. EBITDA growth is stable and the market share of the company is increasing continuously. Superior network capacity is the strength of the company. It is expected that the growth momentum of the company is going to continue during the coming quarter.
EBITDA Growth Stable, ARPU Healthy
Brokerage house Motilal Oswal says that the EBITDA of telecom company Airtel has seen a growth of 6 percent on a quarterly basis. Stable growth has also been achieved in India Mobile EBITDA on a quarterly basis. The company has shown strong growth as compared to Pierce and has managed to increase the market share. Compared to last year, there has been 22 percent growth in EBITDA. The company’s ARPU is healthy and it has reached Rs 163. The brokerage says that the company will also get the benefit of further tariff hike.
Debt consistently low, home business strong
The brokerage house says that Airtel has continuously reduced its debt. The operating cash flow of the company is strong. Talking about the home business, there has been a growth of 12%/15% in revenue and EBITDA on a quarterly basis. At the same time, the margin has improved by 170bp. Subscriber growth has been 9 per cent quarterly and 50 per cent year-on-year. Enterprise Revenue and EBITDA growth has been 3%/-1% on a quarterly basis. However, digital EBITDA has remained muted. The brokerage house has given investment advice at the current level.
Global Brokerage Opinion
The brokerage house CLSA has given a target of Rs 915 while advising investment in the stock. At the same time, both Credit Suisse and JP Morgan have set a target of Rs 900, advising them to invest in the stock. Jefferies has also given investment advice, although the target has been reduced from Rs 925 to Rs 910. Giving the rating of outperform, Macquarie has set a target of Rs 860.
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