Brokerages See an Upto 25% Upside in Bharti Airtel Post Strong Q4 Delivery

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Brokerages See an Upto 25% Upside in Bharti Airtel Post Strong Q4 Delivery
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Shares of the telecom major Bharti Airtel (NS: BRTI ) rose 2% in early trade on Wednesday, after posting its Q4 FY22 results a day before. At 9:50 am, it was trading 0.5% higher.

The company’s consolidated net profit rallied a whopping 164.46% YoY and 142% QoQ to Rs 2,007.8 crore in the March quarter, exceeding the Street’s estimate, and consolidated revenue surged 22% YoY to Rs 31,500 crore in the period.

Its EBITDA margin improved 192 basis points to 50.8% in the quarter, and the mobile ARPU came in higher than that of Reliance (NS: RELI ) Jio’s at Rs 178.

Multiple brokerages continue being bullish on the telco stock, posting its strong growth figures in Q4.

Nomura (TYO: 8604 ) maintains its buy rating on Airtel, as its Q4 figures were in line with estimates, as an increased ARPU and net additions drove market share gains further in the Indian business.

The brokerage has set a target price of Rs 855/share for the stock, an upside of 20.6% compared to the current price.

Further, Jefferies (NYSE: JEF ) continues maintaining a Buy call on the telco, led by strong growth delivery in Q4 due to tariff hikes, while subscriber mix continued to improve, thanks to network investments.

However, the global brokerage has downgraded its EBITDA estimates by 1-2% due to the high diesel price and expects the telco to deliver an EBITDA CAGR of 20% from FY22-25, cited CNBC TV-18.

It has set a Rs 880/share target price, an upside of 25% compared to current share price.

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