CLSA raises target price on Bharti Airtel

CLSA has raised target price on Bharti Airtel to Rs 425 from Rs 415 and retained buy rating. The brokerage said Bharti Airtel is its top pick in the sector which has consolidated into a three-player oligopoly.

Bharti Airtel maintained market share at 31 per cent in 2018 despite Jio gaining 10 percentage points market share, the brokerage said. A 23 per cent growth in data subscribers, adoption of bundled plans and minimum recharge plans will improve ARPU, said CLSA.

Bharti Airtel's planned Africa unit IPO and Infratel stake sale will help in deleveraging, added CLSA. The brokerage expects Bharti Airtel's consolidated EBITDA to see a 19 per cent growth on a compounded basis over FY19-FY21.