Analysts see Bharti Airtel stock growing 20% in a year as Street cheers telecom majors strong Q1 operational performance

Bharti Airtel shares registered marginal gains on Friday, a day after the private sector telecom major reported a strong operational performance in the June quarter. The Bharti Airtel stock gained by as much as Rs 5.6 or 0.6 per cent to Rs 877.5 apiece on BSE.

Zee Business Managing Editor Anil Singhvi said the company staged a strong operational performance. He sees support for Bharti Airtel futures at Rs 855 and a higher level at Rs 890.

Bharti Airtel Q1 results

After market hours on Thursday, Bharti Airtel reported a consolidated net profit of Rs 1,613 crore for the quarter ended June 30. The company said changes in the Nigerian forex market in June led to a forex loss of Rs 3,416.3 crore for the group, presented as an exceptional item.

Its revenue grew four per cent on a sequential basis to Rs 37,440 crore for the three-month period, according to a regulatory filing. 

Bharti Airtel's margin — a key measure of profitability — stood at 52.3 per cent for the June quarter as against 51.9 per cent for the previous three months. The telecom operator's average revenue per user (ARPU) — a measure of the income generated from each user — came in at Rs 200 for the April-June period as against Rs 193 for the previous quarter. 

According to Zee Business research, Bharti Airtel's quarterly net profit was estimated at Rs 2,600 crore, revenue at Rs 36,800 crore, margin at 52.2 per cent and ARPU at Rs 198. 

Morgan Stanley maintained an 'overweight' rating on Bharti Airtel with a target price of Rs 870 for the stock, and highlighted that the company's India EBITDA exceeded the brokerage's estimate. Read more on Bharti Airtel Q1 earnings

Here's what analysts make of Bharti Airtel's Q1 results:

Zee Business analyst Kushal Gupta recommends buying Bharti Airtel shares as a fundamental pick with a 12-month target of Rs 1,050 apiece, which suggests an upside of 20.4 per cent from Thursday's closing price. 

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