Buy Bharti Airtel; target of Rs 390: Sharekhan
Sharekhan’s research report on Bharti Airtel
Planned unlocking the value of its holdings in its subsidiaries and divestment of tower business stake would further reduce net debt/EBITDA level to around 2.6x and provide cash flow support. India wireless business surprised positively during Q4FY2019, with revenue and EBITDA growth of 4%/32% q-o-q, respectively; steep increase in ARPU to Rs. 123 (18.6% q-o-q). DTH business performed well despite uncertainty around new tariff order implementation; ARPU improved while other industry players struggled during the quarter.
We maintain Buy on Bharti Airtel with a revised PT of Rs. 390, considering its resilient performance in a tough environment and some signs of stability in India wireless business.
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