Motilal Oswal is bullish on Bharti Airtel recommended buy rating on the stock with a target price of Rs 920 in its research report dated November 22, 2021.
November 23, 2021 / 02:09 PM IST
Motilal Oswal’s research report on Bharti Airtel
The effective tariff hike of ~20% in prepaid plans is expected to contribute incremental revenue/EBITDA of INR103b/INR72b, thereby driving 13% consolidated EBITDA growth on a 2QFY22 annualized basis. -To improve cash flow in the industry, other large players are expected to follow suit in the immediate future. Bharti’s lower churn and strong network capability leaves room for a potentially healthy EBITDA increase, in line with the tariff hike in Dec’19. The significant reduction in the data allowance across price plans leaves limited possibility for downtrading.
We see potential for a re-rating in both the India and Africa business on the back of steady earnings growth. We value Bharti on a Sep’23E basis, assigning an EV/EBITDA of 10x/4x to the India Mobile/Africa business, arriving at a SoTP-based TP of INR920. We maintain our Buy rating.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.