Buy Bharti Airtel, target price Rs 1032: Prabhudas Lilladher

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Buy Bharti Airtel, target price Rs 1032:  Prabhudas Lilladher


Prabhudas Lilladher has buy call on Bharti Airtel with a target price of Rs 1032. The current market price of . is Rs 750.1. Time period given by analyst is one year when 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 435674.68 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
The brokerage initiates coverage on Bharti Airtel Ltd (Bharti) with ‘BUY’ rating at SOTP based TP of Rs1,032. It believes Bharti is a compelling play on multiple growth opportunities in emerging digital economy given 1) strong brand presence across mobile, enterprise business, home services, DTH and Africa business, 2) focus on attracting high quality discerning customers for ARPU expansion (ARPU at ~Rs266 in FY25E v/s Rs163 in FY22), 3) digitization and innovation with supportive government policies and 4) affordable 5G rollout wherein Bharti will use existing 4G infrastructure with 3.5GHz spectrum acquired recently. The Indian telecom sector is expected to enter into a strong growth phase as wireless revenues will grow at 17.7% CAGR to Rs2.9trn over FY22-25E. Underpinned by these positives, the brokerage expects Bharti’s consolidated EBIDTA/PBT to increase at 21.8%/84.2% CAGR over FY22-25E.


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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