Bharti Airtel stock: What to do with the stock after margin missed estimates, ARPU in line?
The telco posted mixed Q1 results with ARPU growth on expected lines during the reporting quarter.
Telco major Bharti Airtel's shares will gain traction in Tuesday's trade (August 6) after the company came up with mixed results during Q1. For the reporting quarter, the company's ARPU or average revenue per use was largely in line with estimates. The ARPU logged an increase of 1 per cent sequentially to Rs 211 per share.
EBITDA up 1.8% to 19707 CR (20100 est)
Margin 51.2% (52.1% est)
Company's profit doubles sequentially
The company's consolidated net profit came in at Rs 4,159.9 crore for the April-June period, marking an increase of 100.8 per cent on a quarter-on-quarter basis and exceeding analysts' expectations by a wide margin.
Mobile services segment registered sequential growth
The telco's mobile services India unit iregistered 2.1 per cent growth sequentially in revenue to Rs 22,527.4 crore. The segment was driven by strong 4G/5G customer additions, improvement in its customer mix, and an increase in its average revenue per user (ARPU) - a key measure of profitability for telecom service providers, according to Bharti Airtel.
Jefferies gives buy
Jefferies continues with its buy rating and a target of Rs 1,760, suggesting potential gains of 20 per cent.
Morgan Stanley maintains equal weight call
Morgan Stanley maintains equal weight call with a target of Rs1330, a potential downside of over 9 per cent.
Citi maintains buy
As per the brokerage, the company's Q1 India mobile performance has been in-line. Encouragingly, India capex showed signs of moderation.
Macquarie on Bharti Airtel continued with neutral call
Macquarie on Bharti Airtel continued with neutral call and a target of Rs 1,280, suggesting the possibility of losses to the tune of 13 per cent. Softer growth momentum; PAT beat led by one-offs, noted the brokerage.