Bharti Airtel Shares Surge On The Back Of Q2 Earnings — Check Target Price
In light of Airtel's promising second-quarter update, Jefferies has released a bullish note on the counter, notably hiking the target price from Rs 2,500 to Rs 2,635.
Shares of Bharti Airtel Ltd. has surged more than 2.5% in trade on Tuesday on the back of September quarter earnings and a bullish note from Jefferies.
The stock is trading at Rs 2,126, reaching an intraday high of Rs 2,130. This compares to Monday's closing price of Rs 2,074. The stock has given over 32% return over a one-year period.
Bharti Airtel's total revenue in the second quarter saw a solid 5% increase, rising from Rs 49,463 crore to Rs 52,145 crore.
Net profit showed the most significant surge, jumping by 14% from Rs 5,948 crore to Rs 6,792 crore.
Further, the key operational metric of average revenue per user saw a healthy increase of 2.4%, rising from Rs 250 to Rs 256.
Bharti Airtel Q2 Highlights (Consolidated, QoQ)
Revenue up 5% to Rs 52,145 crore versus Rs 49,463 crore.
Ebitda up 6% to Rs 29,561 crore versus Rs 27,839 crore.
Margin flat at 56.7% versus 56.3%.
Net profit up 14% to Rs 6,792 crore versus Rs 5,948 crore
The consistent rise in ARPU is a positive indicator of the company's ability to drive customer spending and transition users to higher-value plans, which is crucial for long-term sustainable growth in the telecom sector.
In light of Airtel's promising second-quarter update, Jefferies has released a bullish note on the counter, notably hiking the target price from Rs 2,500 to Rs 2,635.
The note pointed out Airtel's outperformance in key Africa as well as domestic market.
Twenty five out of the 32 analysts tracking the company have a 'buy' rating on the stock. Two recommend a 'hold' while three recommend 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 2,116, implying flat returns.
