BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Bharti Airtel Ltd. has seen decent earnings growth for the last 12 quarters. However, we expect Bharti Airtel to witness-
a period of soft earnings given low probability of a price hike, and
high capex over the next two-three years given increased investments in 5G and rural densification.
Over the last three years (FY20-23E), Bharti Airtel reported a compound annual growth rate of 19%/34% in India Mobile revenue/Ebitda, driven by multiple tariff hikes (strong 40% increase in average revenue per user), a shift from 2G to 4G subscribers, and spectrum usage charge savings leading a signification free cash flow generation.
Going forward, we see low probability of a tariff hike in the near term and heightened competition for market share among telcos, which may increase churn and drive SIM consolidation. As a result, we factor in India Mobile revenue/Ebitda growth of 11%/43% over FY23-25E versus 19%/34% growth over FY20-23E.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
