Since January 25 2017, from its recent low of Rs 312, the stock rallied 19% as compared to 2.4% rise in the S&P BSE Sensex.
Analysts at Motilal Oswal Securities maintain ‘buy’ rating on the stock with a target price of Rs 400 per share.
The October-December 2016 (Q3FY17) has witnessed steep impact in India wireless business due to the new operator’s free offering and demonetization.
Management believes there is a strong market share improvement potential and once the dust settles and free usage ends, there is a strong growth opportunity in the market.
During 3QFY17, Airtel launched its payment bank becoming the 1st payment bank to go live. It allows customers to open bank accounts at retail outlet. Airtel will develop payment and withdrawal ecosystem with 5m outlets on pan India basis.
“We believe as market stabilizes in FY19, a 10-15% rise in operating cash flow and a 10% annual expected reduction in capex can offer about 10-12% free cash flow yield,” the brokerage firm said in Q3 results update.
At 03:07 pm; the stock was up 3% at Rs 369 as compared to 0.13% rise in the benchmark index. A combined 3.82 million shares changed hands on the counter on the BSE and NSE so far.