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Bharti Airtel shares gain 2% despite missing Q4 estimates. Should you buy, sell or hold?


May 15, 2024

Shares of Bharti Airtel on Wednesday surged 2% on BSE to the day’s high of Rs 1,312.80 even after the telecom major reported a 31% year-on-year (YoY) fall in its consolidated net profit to Rs 2,072 crore for the fourth quarter, while the revenue from operations increased 4% to Rs 37,599 crore against Rs 36,009 crore for the same period last year.

Airtel has posted an ARPU (average revenue per user) for the quarter stood at Rs 209 compared to Rs 193 in the same quarter of last year, driven by sustained focus on acquiring quality customers and mix improvement.

Most brokerages have a neutral stance on the stock. Here’s what they have to say:

Bank of America

Bank of America states that Airtel’s ex-Africa revenues were in line with the estimates, however, EBITDA along with enterprise margins was a miss.

BofA maintained a ‘neutral’ rating for the stock with a target price of Rs 1,430.


Global brokerage firm UBS mentioned that net adds were surprisingly positive although ARPU growth remained muted. While India business was in line with the estimates, Q4 was a miss owing to weak Africa business.UBS has a ‘neutral’ view of the stock with a target price of Rs 1,310.

Motilal Oswal

“Consolidated revenue/EBITDA declined 0.8%/2.3% QoQ to Rs 37,600 crore/ Rs 19,400 crore (in line/5% miss), led by currency devaluation in the Africa segment. India Mobile/Africa CC revenue grew 2%/3% QoQ and EBITDA was up 2%/down 1% QoQ,” stated a report by Motilal Oswal.

The domestic brokerage firm has a ‘buy’ call on the stock, however, a target price will be given after the analyst conference call.

Also read: India’s weight in key MSCI equity index hits another high, to boost inflows

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

By admin