The brokerage firm believes that Airtel may pick up, especially after the 5G rollout. It can also touch the level of Rs 888 in 6 months and Rs 1,050 in a year.
The share price of Bharti Airtel rose more than 4% on Tuesday. The hike comes a day after the telco announced that the board would consider raising funds by issuing a preferential share issue to investors other than its promoter group. Share price of Airtel rose 4.2% to hit a high of Rs 720.15 today on the Bombay Stock Exchange (BSE). The stock has gained about 6% in one month and more than 25% in the last one year.
The Company, in a regulatory filing, said that a meeting of the Board of Directors of the Company is scheduled to be held on Friday, January 28, 2022 to, inter alia, issue equity shares through Preferential Issue (Promoter Re addition / Promoter Group). proposal will be considered. At present, the Mittal family and SingTel (Airtel’s promoter group) hold 55.93% stake in the company, while the rest is with the public. The Mittal family holds about 24.13% stake, directly and indirectly, while SingTel holds 31.72%.
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Jefferies: BUY
Target price: Rs 925
“The announcement by Bharti Airtel to consider issuing a preferential issue is surprising as we do not consider the capital required immediately,” Jefferies said in a note. It added that the recent tariff hike will help the company achieve 20% year-on-year growth in consolidated revenue in FY2023. This is the highest in a decade. The brokerage further said, “Given the strong growth outlook, we are positive on the stock. The brokerage firm has given it a BUY rating with a target price of Rs 925.
Proficient Equities: BUY-Rs 715
SL – Rs 662 | Target- Rs 783 |Target 2- Rs 863
Manoj Dalmiya, Founder and Director, Proficient Equities Ltd. said, “Airtel share price today rose 4% in view of the telco’s announcement of raising funds through preferential share issue. A meeting will be held on Friday, 28 January 2022 to consider the proposal for issue of equity shares. The current promoter holdings are as follows: Mittal Family -24.13%, Singtel -31.72% and rest with Public. However, this step is a bit doubtful. The company’s goal is to achieve 5G technology. There is a lot of competition in the telecom space and such steps are needed to achieve capital intensive and market share.”
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The share price is expected to reach Rs 1,050 in a year
Ravi Singhal, Vice Chairman, GCL Securities is bullish on this stock. He told Financial Express Online that the stock looks great, especially since many of the telecom company’s problems have been resolved. However, there are some issues that remain to be resolved. Singhal believes that the stock may rise, especially after the 5G rollout. He said, “It can also touch the level of Rs 888 in 6 months and Rs 1,050 in a year.”
(Article: Harshita Tyagi)
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