Airtel Stock Zoom: The shares of telecom company Airtel have seen a sharp rise on Wednesday i.e. January 13. Today, the share of Airtel in intraday rose by 6% to reach 602 rupees. It is close to its record high. The company has received approval from the Department of Telecommunication to increase the FDI limit. Airtel will soon start the process of meeting 100% foreign investment limit. Due to this news, there was a strong purchase in Airtel today. Brokerage houses also look positive on the stock.
45% rise in 3 months
Airtel’s sentiments continue to be better. It can be estimated from this that in the last 3 months the share price has gone up by 45 percent. The share price was Rs 415 on 13 October 2020, which reached Rs 602 on 13 January 2021 today. The 52-week high for the stock is Rs 612, which was made on 20 May 2020.
More will come in the stock now!
Brokerage houses are looking positive on Airtel. They expect the stock to be faster than the current price. Talking about a separate brokerage house, the stock has a target of up to Rs 730.
CLSA: Brokerage house CLSA has set a target of Rs 730, recommending investment in Bharti Airtel. According to the brokerage, where Jio’s revenue market share reached 37 percent in the year 2020, Airtel also reached 32 percent. Talking about New Year 2021, this growth will be sustained due to increase in tariff hike and data subscribers. Airtel’s ARPU is better. Increasing free-cash-flow, Indus Tower deal will also benefit from a possible reduction in debt. The brokerage estimates EBITDA CAGR to be 16 per cent in FY21-23.
Morgan Stanley: Brokerage house Morgan Stanley has set a target of Rs 680, giving an overweight rating on Airtel. According to the brokerage, approval to increase the FPI limit is a positive sign. Work has started on reducing the limit of foreign investment to 100 percent. At the same time, in August 2020, instead of underperformance, the uptrend is expected.
Better outlook outlook
Xpert is also positive about Airtel’s earnings outlook. The company will benefit from adding the maximum subscribers in the December quarter and further tariff hike. The ARPU of the company is estimated to be Rs 165 in the December quarter. Growth is also expected in Indian wireless revenue. According to brokerage house HSBC, Airtel’s revenue and EBITDA for FY20-23e can grow at 12 per cent and 15 per cent CAGRs.