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Bharti Airtel share price falls 5% from day’s high ahead of conference call; what should investors do post Q4?

Bharti Airtel share price fell 5 per cent from day’s high to Rs 691 apiece on BSE on Wednesday, ahead of the company’s conference call this afternoon.

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Bharti Airtel stock has corrected by almost 6 per cent in May, with crucial support seen around 650 levels

Bharti Airtel share price fell 5 per cent from day’s high to Rs 691 apiece on BSE on Wednesday, ahead of the company’s conference call this afternoon. The stock rose nearly 3 per cent in the early trade but soon turned red. The telecom major posted a net profit of Rs 2,008 crore for the March quarter, a 142% jump sequentially. Analysts at Motilal Oswal Financial Services said that the increase of 4.7 per cent stake in Indus Towers along with interest capitalisation of AGR liability had left limited scope for deleveraging (net debt at Rs 1,235 billion) despite Rs 47 billion of FCF generation in the quarter, which acted as a key negative. Bharti Airtel also announced a dividend of Rs 3 per share fully paid-up equity share for the financial year 2021-22.

In the traded volume terms, a total of 4.56 lakh shares exchanged hands on BSE, while 1.39 crore scrips traded on National Stock Exchange (NSE), so far in the day. Bharti Airtel stock has corrected by almost 6 per cent in May, with crucial support seen around 650 levels, said Aamar Deo Singh, Head Advisory, Angel One. “Upside appears to be capped around 780 levels. Technically, the stock from a long-term perspective, continues to be in an uptrend. Investors are advised to hold their positions, keeping a watch on the crucial levels mentioned,” Singh told FinancialExpress.com.

Analysts also said that despite impressive Q4FY22 earnings where operating profit has shown great improvement, net profit seems to have grown due to other income growth. “Technically, 725 remains a strong resistance & buying should be done only on a close above this level. Immediate & strong support will be at 680,” AR Ramachandran, Co-founder & Trainer, Tips2Trades, told FinancialExpress.com.

“Even though free cash flows have increased, Airtel has seen a rise in net debt during the quarter. Management commentary on deleveraging plans will be key to watch out for,” INDMoney said in a report.

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