Analysts bullish on Bharti Airtel despite profit drop in Q1
Brokerages have maintained a bullish view on Bharti Airtel even as the telecom company reported a 62.7% sequential fall in consolidated net profit to ₹284 crore for the quarter ended June, which was below market expectations.
By ET Bureau | Updated:
Agencies
Kotak Institutional Equities sees Bharti as a definite play on industry consolidation or repair.
Mumbai: Brokerages have maintained a bullish view on Bharti Airtel even as the telecom company reported a 62.7% sequential fall in consolidated net profit to ₹284 crore for the quarter ended June, which was below market expectations.
Edelweiss, IIFL, CLSA, Kotak Institutional Equities, Jefferies and Emkay have maintained a buy rating. Shares of Bharti Airtel ended up 4.3% at ₹598.90 on Thursday.
Brokerages said the telecom industry is moving towards a duopoly amid Vodafone Idea's financial woes, which could benefit Bharti.
“We believe the Indian telecom industry structure can move towards a duopoly in the wake of Vodafone Idea’s inability to raise capital...Bharti, with its superior network and strong balance sheet, is well placed to capture market share,” said Edelweiss.
On a similar note, IIFL said that the path to a significant price hike and accelerated consolidation in the industry is getting clearer with Vodafone Idea's mounting financial pressure, which could be positive for Bharti.
Kotak Institutional Equities sees Bharti as a definite play on industry consolidation or repair.
