Shares of Bharti Airtel jumped as much as 4.71 per cent to 425.40, their highest in nearly a month, as Q4 metrics surprised analysts.
The stock was the top percentage gainer on the NSE index.
The company’s Q4 profit plunged 77.8 per cent to Rs 82.9 crore ($12.43 million), hurt by continued pricing pressure in the telecoms sector after the entry of an upstart rival in 2016.
Analysts, however, seem to be impressed with the company’s metrics. According to Nomura analysts, Q4 operating performance was resilient relative to expectations as mobile business metrics was not too bad.
The company has “solidly defended its market share and has the spectrum, capacity and willingness to invest,” UBS analysts said in a note, maintaining a target price of Rs 560 with rating “buy”. UBS had expected the mobile carrier to post Q4 loss of Rs 220 crore.
Stiff cost rationalisation across businesses helped the company avoid reporting net loss in the quarter, according to Kotak Institutional Equities.
Separately, the company also approved the merger of Indus Towers Ltd with its mobile masts operator unit Bharti Infratel Ltd, creating the largest tower company outside China by number of towers.
At least 24 of 31 brokerages have rated the stock “buy” or higher, four “hold” and three “sell” or lower; their median target price is Rs 560. Up to Tuesday's close, the stock was down 23.3 per cent this year.