Bharti Airtel Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 327660.77 Crore) operating in Telecommunications sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 26517.80 Crore, up 2.84 % from last quarter Sales of Rs 25785.00 Crore and up 20.83 % from last year same quarter Sales of Rs 21947.10 Crore Company reported net profit after tax of Rs 1570.70 Crore in latest quarter.
Investment Rationale
With the expectation of healthy FCF generation, BHARTI’s position is hedged –do not see any urgent need for a price hike. It rolls over the valuation to FY23E, assigning EV/EBITDA of 10x to the India Mobile business and 6x to the Africa business, arriving at an SOTP-based TP of INR720. Its higher target multiple for the India Mobile business captures expected gains from any potential increase in ARPU or market share, both of which may not be fully captured in our model.
Promoter/FII Holdings
Promoters held 56.2 per cent stake in the company as of Dec 30, 2020, while FIIs held 17.8 per cent, DIIs 21.8 per cent and public and others 4.2 per cent.
