Bharti Airtel hits new highs on improving biz prospects

Mumbai: Shares of telecom major Bharti Airtel hit an all-time high on Tuesday as investors bet that the company's prospects will improve with rival Vodafone Idea teetering on a debt pile. Shares of Bharti Airtel ended up 3.84% at ₹622.25 after touching a record high of ₹627.95 during the day. The stock had last logged a record high of ₹623 in February this year.

“ARPUs (average revenue per user) have bottomed out, spectrum charges could be delayed. The time of underperformance is over. ₹750 can be on the cards,” said Sanjiv Bhasin, director, IIFL Securities. Bharti Airtel earlier this month reported a 62.7% sequential fall in consolidated profit to ₹284 crore for the quarter ended June. The telecom operator, however, reported a 4.3% sequential rise in consolidated revenues to ₹26,854 crore for the June quarter.

The stock has gained 17.5% in the last one month, while Sensex has gained 4.16% in the last one month.


Vodafone Idea’s weak financial position puts the stock in a beneficiary position, said analysts. “We believe the Indian telecom industry’s structure can move towards a duopoly in the wake of Vodafone Idea’s inability to raise capital. The government may provide the latter sops, but we reckon the situation cannot be salvaged without a significant tariff hike,” said Edelweiss in a recent note, maintaining a ‘buy’ rating on Bharti Airtel with a target price of ₹705. "Bharti, with its superior network and strong balance sheet, is well placed to capture the market share,” said Edelweiss.