Buy Bharti Airtel, target price Rs 590: CLSA

CLSA has maintained buy rating on Bharti Airtel with Rs 590 target price. The stock ended down1.8 per cent at Rs 461.60 on Wednesday while the BSE Sensex closed 173.25 points down (-0.58 per cent) at 29,893.96.

Bharti Airtel Ltd., incorporated in 1995, has a market cap of Rs 251828.53 crore.

Investment Rationale


Even without the current traffic surge, CLSA has forecasted a13/26 per cent consol revenue/Ebitda CAGR for Bharti Airtel by FY22 led by tariff hikes. The valuation is just 15 per cent above bedrock and Bharti Airtel’s gearing even post AGR payment is comfortable at 3 times Ebitda, said CLSA.

Financials

Bharti Airtel's key products/revenue segments include Service Revenue which contributed Rs 49589.50 crore to sales value (99.96 per cent of total sales) and Sale of Products which contributed Rs 18.50 crore to sales value (0.03 per cent of total sales)for the year ending March 31, 2019.

For the quarter ended December 31, 2019, the company reported consolidated sales of Rs 21947.10 crore, up 3.86 per cent from last quarter sales of Rs 21131.30 crore and up 6.96 per cent from last year same quarter sales of Rs 20519.20 crore. The company reported net profit after tax of Rs -312.60 crore in the latest quarter.