Airtel Stocks Rose: Telecom shares Airtel shares have seen a great boom today. The company’s stock rose 12 per cent in today’s trading to Rs 488. This is a 52-week high for the stock. The stock closed at Rs 435 on Tuesday. Actually, Airtel has presented second quarter results, which are better than expected. During this period, the company’s data consumption and average earnings per user have increased, which has helped the company to reduce losses. Experts are also expecting a strong performance in the stock.
Earnings per user increased
Airtel’s average earnings per user (ARPU) in the second quarter stood at Rs 162, compared to Rs 128 a year ago. At the same time, it was Rs 157 in the first quarter of this year. Whereas Jio’s ARPU stood at Rs 140.3 in the first quarter. In the second quarter ended on September 30, Airtel added 1.44 crore new 4G users, making the total number of 4G subscribers of the company to 15.27 crore. This number is 48 percent more than last year.
Increased data consumption increased earnings
Work from home, ie work from home, increased due to Coronavirus epidemic in September quarter. Airtel has benefited from this. In fact, Airtel’s data consumption has increased by 58 percent in the September quarter due to work from home. Airtel earned a lot of money from this.
Losses reduced, income increased
In the second quarter of the financial year 2020-21, the company’s loss has been reduced to Rs 763 crore. Whereas Airtel had a loss of Rs 23,045 crore in the same quarter a year ago. These are strong sentiments for the company. Airtel had a loss of Rs 15,930 crore in the first quarter of this financial year. The company’s revenue grew 22 percent to Rs 25,785 crore in the second quarter, from Rs 21,131 crore in the same period last year.
Can get up to 65% return
Brokerage house CLSA has suggested an investment target of Rs 715 for the shares of Airthel. Brokerage house Citi has set a target of Rs 690 for the stock. The target of the brokerage house Motlal Oswal is Rs 650 for the share, while Dolat Capital has suggested an investment aiming at Rs 605 for the share. Gauldman Sex has also suggested investing in the stock and has set a target of Rs 635. If you look at the current price of Rs 433, then the stock can get up to 65 percent returns.
(Note: We have given the information here based on the company’s second quarter performance and brokerage house report. Given the risk of the stock market, take the opinion of the first expert before investing.)
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