Bullish on the overall telecom sector, the global brokerage firm CLSA reiterates Buy stance on Bharti Airtel as the most preferred stock from the sector, while raising the price target to Rs 910 per share from Rs 863 apiece earlier on Thursday with an upside of over 28 per cent. 

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In the 30-pack share on the BSE Sensex, it was mere Bharti Airtel that opened positive with minor gains, now joined by Maruti Suzuki. The stock surged almost 1.5 per cent to Rs 710 per share on the BSE intraday, as compared to 1.27 per cent decline in the S&P BSE Sensex. 

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The brokerage factor in 20 per cent tariff hikes for Bharti Airtel, Vodafone Idea, and Reliance Jio from the second half of FY22 to FY24. 

Adjusted gross revenue (AGR) dues would likely to be reviewed led by incumbents’ petitions after relief package, CLSA said in a report adding that the 5G transition will commence in 2022 with a cut in spectrum prices, while big events such as 5G spectrum auction and Rel Jio initial public offer likely. 

The telecom major Airtel in a filing on Wednesday also confirmed that the subsidiary Airtel Africa received $159 million towards tower assets sale in Tanzania. 

“Airtel Africa Plc, a subsidiary of Bharti Airtel, has also confirmed the first closing of the transaction to sell its telecoms tower assets in Tanzania for $176.1 million (Rs 1,192 crore)”, the release said. 

Approximately $60 million (Rs 450 crore) from the proceeds will be used to invest in network and sales infrastructure in Tanzania and for distribution to the Government of Tanzania, as per the settlement described in the Airtel Africa IPO Prospectus document published in June 2019.  

The balance of the proceeds will be used to reduce debt at Airtel Group, the company had said.