Hong Kong-based CLSA too maintained a ‘Buy’ stance on the counter, arguing for a favourable risk-to-reward ratio.
The stock jumped nearly 2% on the NSE to attain its day’s high of Rs 482.
Telecom major Bharti Airtel on Thursday reported a consolidated net profit of Rs 1,612 crore for the quarter ended June 2023, almost flat when compared with Rs 1,607 crore in the last-year period. The profit figure was way below the ET Now poll estimate of Rs 2,861 crore.
Revenue from operations during the quarter rose 14% year-on-year (YoY) to Rs 37,440 crore. The company reported 19% growth in its consolidated EBITDA at Rs 19,746 crore. EBITDA margins improved 271 basis points YoY to 53.7%.
Jefferies: Buy | Target: Rs 1,040
Jefferies maintains a ‘Buy’ on Airtel shares with a revised price target of Rs 1,040 from an earlier Rs 1,020, an 18% upside from the previous target of Rs 877 at which it was recommended. Bharti Airtel’s Q1 beat estimates with postpaid subscriber additions and higher margins in India mobile. A higher growth in Africa and strong free cash flow (FCF) generation were other key highlights of the quarter.
Improving subscriber mix and cost controls provides the comfort of double-digit Ebitda growth in FY24 even without a tariff hike.
CLSA: Buy | Target: Rs 1,030
CLSA maintains a ‘Buy’ on Airtel for a price target of Rs 1,030. The Q1 India revenue and Ebitda were ahead of estimates with improved ARPU (Average Revenue Per User). The company also posted its highest-ever postpaid subscriber gains with growth witnessed in home broadband and Airtel enterprise businesses, the brokerage noted. Bharti stock is offering a highly favourable risk to reward, it said.
Meanwhile, Motilal Oswal has also taken a ‘Buy’ view on the stock.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)