Airtel share price jumps 3%; brokerages see up to 30% upside

Airtel Share Price: Global brokerage firm CLSA has retained Buy rating on telecom giant Bharti Airtel, NSE: BHARTIARTL. It has raised the price target to Rs 1,040 per share from Rs 930.

CLSA reported that Bharti Airtel is the best play on India mobile amid hefty operating cashflows and rising Return on Capital Employed (RoCE). The brokerage firm forecasts Bharti Airtel to record 16 per cent/22 per cent India mobile revenue/EBITDA CAGR by FY25 with 5G upside to mobile and company's enterprise offerings.

Domestic brokerage firm ICICI Securities has also maintained Buy rating on Airtel with a price target of Rs 970. 

The brokerage house said that Airtel's consolidated EBITDA to grow 2.6 per cent QoQ (+22.7 per cent YoY) to Rs180bn in the third quarter. It said that Bharti’s India revenues to grow 0.6 per cent QoQ (17 per cent  YoY) to Rs2 47bn led by mobile segment (up 1.8 per cent QoQ / 20 per cent YoY). India EBITDA is likely to be up 2 per cent QoQ (23.6 per cent YoY) to Rs128bn.

The company's consolidated revenue could rise 1.7 per cent QoQ to Rs351bn and EBITDA 2.6 per cent to Rs180 billion. Net profit is seen at Rs32bn benefiting from lower forex losses partially offset by 5G spectrum cost.

Airtel Share Price Target 2023

Meanwhile, shares of Airtel jumped 3 per cent on Monday intraday. At 1:27 PM, the scrip quoted Rs 818 apiece on NSE and BSE. Airtel is the country's second largest telecom operator. The company is currently rolling out 5G services in different cities. The company's management has exuded confidence that 5G Plus will deliver the best experience in India.

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