Shares of Bharti Airtel saw tremendous gains on Thursday (5th August 2021). The company’s shares rose 6.9 per cent to Rs 614 per share. This stock became the top gainer of the Sensex during early trading. Bharti Airtel’s stock has gained 16.8 percent so far this year. This stock has gained more than the Nifty-50 benchmark of NSE.
Shares rise on Bharti Airtel’s record profit
According to the results announced two days ago, Airtel had made a record profit of Rs 284 crore in the first quarter. It had made a loss in the first quarter last year. Airtel’s revenue also increased by 15.3 percent to Rs 26,854 crore during this period.
Bharti Airtel’s ARPU (Earnings Per User) during the first quarter has been better than that of Reliance Jio. Jio’s ARPU stood at Rs 138 in the June quarter while Bharti Airtel’s ARPU is Rs 146. Many brokerage firms have given it a ‘BUY’ rating with different target prices.
CLSA- Rating BUY Target Price – Rs 730
CLSA has said that Bharti Airtel may increase the price of pre-paid data plans. It has said that the tariff may increase by 10 percent in the second half of the financial year 2021-22. 4G penetration of 57 per cent of the company’s mobile subscribers in India, increase in ARPU and growth in the African market is expected to achieve a CAGR of 17 per cent in consolidated EBITDA in FY 2022-23.
Motilal Oswal , Rating – BUY Target Price -720
Motilal Oswal has said that the company’s capex is very high in network investment in Bharti Airtel India. The company has also paid the dues for the recently purchased spectrum. During the last four quarters, the company has implemented its plans well. Its impact on its growing earnings is clearly visible. Motilal Oswal has kept its target price at Rs 720. However, this target price does not include the factor of increase in tariff and increase in market share.
ICICI Direct Rating – BUY Target Price – Rs 720
According to ICICI Direct, strong margins and growth in 4G network are the most positive aspects of Bharti Airtel. The company’s non-wireless business momentum in Africa is also very good. ICICI Direct is also expecting a hike in tariff. ICICI has kept the target price for the company’s shares at Rs 720. Earlier the company had kept its target price at Rs 690.
(Article: kshitij Bhargava)
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