Buy Bharti Airtel, target price Rs 1,925: ICICI Securities

ICICI Securities has a buy call on Bharti Airtel with a target price of Rs 1925.0. The current market price of Bharti Airtel Ltd. is Rs 1693.1. Bharti Airtel, incorporated in 1995, is a Large Cap company with a market cap of Rs 1038176.78 crore, operating in Telecommunications sector.

Bharti Airtel's key products/revenue segments include Service Revenue and Sale of Products for the year ending 31-Mar-2024.



Financials
For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 45599.00 crore, up 9.28% from last quarter Total Income of Rs 41728.00 crore and up 18.94% from last year same quarter Total Income of Rs 38339.30 crore. The company has reported net profit after tax of Rs 14474.90 crore in latest quarter.

The company's top management includes Mr.Sunil Bharti Mittal, Mr.Gopal Vittal, Ms.Chua Sock Koong, Mr.Tao Yih Arthur Lang, Mr.Rakesh Bharti Mittal, Ms.Nisaba Godrej, Ms.Kimsuka Narasimhan, Mr.Shyamal Mukherjee, Justice(Retd)Arjan Kumar Sikri, Mr.Sunil Bharti Mittal, Mr.Douglas Anderson Baillie, Mr.Gopal Vittal, Ms.Chua Sock Koong, Mr.Tao Yih Arthur Lang, Mr.Rakesh Bharti Mittal, Ms.Nisaba Godrej, Ms.Kimsuka Narasimhan, Mr.Shyamal Mukherjee, Justice(Retd)Arjan Kumar Sikri, Mr.Douglas Anderson Baillie. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-12-2024, the company has a total of 609 Crore shares outstanding.


Investment Rationale
Bharti India EBITDA will benefit from Indus consolidation. Indus Towers' accounting has changed to subsidiary, from earlier associate, effective 19 Nov?24. ICICI Securities sees Bharti?s India revenue rising 8.7% QoQ/ 38% YoY to Rs 398 bn and its mobile segment may dip 0.1% QoQ/ +19% YoY in Q4FY25E. India EBITDA should grow 0.1% QoQ (L2L) / 57.5% YoY to Rs 240 billion. Bharti Africa?s USD revenue to grow 2% QoQ/ 15.7% YoY to $1.3 billion and EBITDA to grow 2.7% QoQ/ 17% YoY to $605 million. Consolidated revenue may grow 12.1% QoQ to Rs 505 billion and EBITDA may grow 18.5% QoQ to Rs 291 billion. Net profit is seen at Rs 67.6 billion. Bharti?s enterprise business revenue may dip 5% QoQ due to discontinuation of commodity business, but negligible impact likely on EBITDA front as indicated by the company in its Q3FY25 earnings call.