AgenciesICICI Securities has add call on Bharti Airtel with a target price of Rs 775. The current market price of Bharti Airtel Ltd. is Rs 709.4. Time period given by analyst is one year when Bharti Airtel Ltd. price can reach defined target.
Bharti Airtel Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 414461.72 Crore) operating in Telecommunications sector.
Bharti Airtel Ltd. key Products/Revenue Segments include Service Revenue and Sale of Products for the year ending 31-Mar-2022.
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 32996.80 Crore, up 4.69 % from last quarter Total Income of Rs 31518.90 Crore and up 21.92 % from last year same quarter Total Income of Rs 27063.40 Crore. Company reported net profit after tax of Rs 2306.00 Crore in latest quarter.
Investment Rationale
Bharti Airtel’s (Bharti) Q1FY23 print reinforces the company’s execution capability. Mobile revenue grew 19.9% over Q2FY22, which reflects the best tariff pass-through, compared to RJio’s 16.7% and VIL 10.7%. Incremental EBITDA margin was 67.4% for the mobile business, and FCF (post interest) was at Rs70bn. Bharti in concall described its 5G strategy and said it is well-positioned with its mid-band spectrum holding. Company is convinced that non-standalone architecture (NSA) offers the advantages of sweating 4G assets, providing better uplink experience on mid-band, and lowering operating cost (50% less per GB vs SA). Bharti is frontloading capex for next 18 months with the target to rollout 5G services in 5,000 towns by then. However, payback from 5G is still unclear (across telcos globally) and will put pressure on tariff hikes. The brokerage has increased EBITDA estimates by 3.5% each year for FY23E and FY24Eon lower SUC charges, but increased spectrum investment and capex. Its target price for Bharti dips to Rs775 (from Rs812) as it cuts India business FY24E EV/EBITDA multiple to 9.5x (from 10x). Reduce to ADD (from Buy) on risk to FCF.
Promoter/FII Holdings
Promoters held 55.93 per cent stake in the company as of 30-Jun-2022, while FIIs owned 24.14 per cent, DIIs 14.63 per cent.
Bharti Airtel Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 414461.72 Crore) operating in Telecommunications sector.
Bharti Airtel Ltd. key Products/Revenue Segments include Service Revenue and Sale of Products for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 32996.80 Crore, up 4.69 % from last quarter Total Income of Rs 31518.90 Crore and up 21.92 % from last year same quarter Total Income of Rs 27063.40 Crore. Company reported net profit after tax of Rs 2306.00 Crore in latest quarter.
Investment Rationale
Bharti Airtel’s (Bharti) Q1FY23 print reinforces the company’s execution capability. Mobile revenue grew 19.9% over Q2FY22, which reflects the best tariff pass-through, compared to RJio’s 16.7% and VIL 10.7%. Incremental EBITDA margin was 67.4% for the mobile business, and FCF (post interest) was at Rs70bn. Bharti in concall described its 5G strategy and said it is well-positioned with its mid-band spectrum holding. Company is convinced that non-standalone architecture (NSA) offers the advantages of sweating 4G assets, providing better uplink experience on mid-band, and lowering operating cost (50% less per GB vs SA). Bharti is frontloading capex for next 18 months with the target to rollout 5G services in 5,000 towns by then. However, payback from 5G is still unclear (across telcos globally) and will put pressure on tariff hikes. The brokerage has increased EBITDA estimates by 3.5% each year for FY23E and FY24Eon lower SUC charges, but increased spectrum investment and capex. Its target price for Bharti dips to Rs775 (from Rs812) as it cuts India business FY24E EV/EBITDA multiple to 9.5x (from 10x). Reduce to ADD (from Buy) on risk to FCF.
Promoter/FII Holdings
Promoters held 55.93 per cent stake in the company as of 30-Jun-2022, while FIIs owned 24.14 per cent, DIIs 14.63 per cent.
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