Target: ₹1,366

CMP: ₹1,134.55

Bharti Airtel Q3-FY24 revenue grew at a moderate pace of 5.9 per cent y-o-y/2.3 per cent q-o-q to ₹37,900 crore, mainly driven by the Indian businesses. Mobile Service India grew by 11.8 per cent y-o-y accounting for 57.1 per cent of its overall revenue; Mobile Services Africa revenue declined by 7.1 per cent y-o-y and accounted for 27.2 per cent of its consolidated revenue while the remaining 15.7 per cent was from non-mobile business. It’s Adj. PAT after minority interest grew by 53.8 per cent y-o-y to ₹2,442 crore.

Despite the moderation in customer addition, it has consistently been able to expand its ARPUs in the Indian business by targeting quality customers and maintaining its active user base. It has been gradually implementing its 5G infrastructure across the country while it is also targeting more than 60k villages which shall aid in customer addition and ARPUs expansion.

Further, its strategic focus on postpaid addition and improving economic condition in African markets and tariff hike as well as monetization of 5G services shall result in overall growth for the company. Factoring this, we estimate its revenue/EBITDA/PAT to grow at a CAGR of 16.6/19.2/19.4 per cent over FY23-FY26. We maintain our Buy rating and revise our target price upwards to ₹1,366

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