Bharti Airtel regains Rs 3 trillion market-cap as stock surges over 5%

Analysts at ICICI Securities have a 'buy' rating on Airtel with a target price of Rs 700 per share

As shares of Bharti Airtel rallied 5.5 per cent to Rs 554 on the BSE in intra-day trade on Thursday on the back of heavy volumes, the firm regained its market capitalisation of Rs 3 trillion. The stock was trading at its highest level since September 2, 2020. 

At 01:14 am, Bharti Airtel's market capitalisation stood at Rs 3.01 trillion, the BSE data showed. The trading volumes on the counter more-than-doubled as a combined nearly 30 million equity shares changed hands on the NSE and BSE till the time of writing of this report. The stock hit a record high of Rs 611.70 on May 20, 2020, which was also its 52-week high.

As per an IANS report, Bharti Airtel has approached the Supreme Court over the assessment of adjusted gross revenue (AGR) dues payable by the company.

According to the telecom operator, the assessment by the Department of Telecommunications (DoT) has errors. As per DoT's assessment, Airtel's total dues stand at Rs 43,980 crore, out of which Rs 25,976 crore is due. Airtel's calculation, however, shows that its total dues stand at Rs 13,004 crore. The telco has already paid Rs 18,004 crore, the news agency reported. CLICK HERE FOR FULL REPORT

Analysts at ICICI Securities have a ‘buy’ rating on Bharti Airtel with a target price (TP) of Rs 700 per share. "Bharti Airtel continues to report resilient numbers, especially on the Indian wireless business front. The major positive is strong subscriber addition and average revenue per user (ARPU) traction that has percolated into superior EBITDA (incremental margins of around 70 per cent)," ICICI Securities said.

The brokerage firm sees favourable industry structure of three players (two being strong), a good enough kicker for an eventual hike in tariff, as well as, superior digital play in the medium to long-term.

"We continue to remain bullish on Bharti (with a TP of Rs 650), given its strong earnings outlook, potential tariff hikes soon, well-capitalized balance sheet, potential FCF generation, and strong competitive position," Motilal Oswal Financial Services said in a company update.

"A price hike, which looked uncertain in the last 6-9 months due to the challenging economic scenario, has started to look imminent with weakening subscriber growth across players. Our recent interactions with industry experts indicate a potential price hike of 15-20 per cent in the next two months," the brokerage firm said in a report dated December 9.