Bharti Airtel shares rise post Q3 results. What should investors do? Here’s what brokerages recommend
Telecom Operators Net Profit Consolidation Bharti Airtel fell 2.8% to ₹ 830 Crore for the third quarter which ended December 2021 of ₹ 854 Crore in the same quarter last year. Bharti Airtel’s shares rise to ₹ 710 each at BSE in the opening offer Wednesday.
The results of 3QFY22 Bharti Airtel were encouraging with consolidated income, up 13% year-on-year (yoy) and EBITDA rose 22% in front of estimates, Jefferies said in a note. The average income per user (ARPU) during the quarter increased to ₹ 163 “The 6% increase in Bharti in India Cellular Arpus is a positive surprise on 3Q. The mixture of Bharti customers increases further; reflection of its network investment. Houses, company and African segments are also positively surprised,” he added. Jefferies has reaffirmed the ranking of purchases on telecommunications shares with a price target of ₹ 910 per share.
The broker believes that the focus of Bharti on tariff / Arpus increases will keep Churn tall, especially among the customer’s sound, but the mixture changes will push the Arpus “Our business, home and African business continues to provide strong, with a stable contribution to the mixture of overall portfolio,” said Bharti Airtel MD and CEO for India and South Asia Gopal Vittal said in the release.
Domestic Broker Motilal Oswal also has a purchase rating on Bharti Airtel’s shares on a stable EBITDA growth and market share of winners with African businesses also witnessing strong growth.
“African continues a healthy EBITDA growth trend with QoQ’s growth of 5%, supported by all-round growth in data and airtl money consistently during the last few quarters. It produces ₹ 400-00 M FCF and remains a low, healthy leverage, growing biz. Stock Up 3x in the last six quarters, which adds 10% to Bharti, “added the broker The views and recommendations made above are individual analysts or broking companies, and not from mint.
