/Buy Bharti Airtel, target price Rs 650: Motilal Oswal

Buy Bharti Airtel, target price Rs 650: Motilal Oswal

Motilal Oswal has given a buy rating to Bharti Airtel with a target price of Rs 650. The share price moved down by 0.89 per cent from its previous close of Rs 451.45. The stock’s last traded price is Rs 447.45.

Bharti Airtel Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 246509.36 Crore) operating in Telecommunications sector.

For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 25785.00 Crore, up 7.71 % from last quarter Sales of Rs 23938.70 Crore and up 22.02 % from last year same quarter Sales of Rs 21131.30 Crore. The Company reported net profit after tax of Rs 8.40 Crore in latest quarter.


Investment Rationale
Delay in tariff hikes has been a key issue and has led to sharp correction in the stock price. But, with a healthy FCF, Bharti’s position is hedged, with no urgent need to seek a price hike. The brokerage assigns EV/EBITDA of 11x to the India Wireless business and 6x to the Africa business on FY22E. Subsequently, it arrives at an SOTP-based TP of INR650.

Promoter/FII Holdings
Promoters held 56.2 per cent stake in the company as of Sept 30, 2020, while FIIs held 17.6 per cent, DIIs 21.7 per cent and public and other 4.5 per cent.

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