HDFC Securities has maintained 'buy' call on Bharti Airtel despite the telecom major posting dismal Q3 results last Thursday, reported over 39 percent fall in its consolidated net profit for the third quarter ended December 31, 2017, to about Rs 306 crore.
HDFC Securities has maintained ‘buy’ call on Bharti Airtel despite the telecom major posting dismal Q3 results last Thursday, reported over 39 percent fall in its consolidated net profit for the third quarter ended December 31, 2017, to about Rs 306 crore. The company’s net profit stood at Rs 504 crore in the same period previous fiscal. “With improvement in industry structure to a three-player market, we pin our hope on ARPU improvement in medium term,” HDFC Securities said in its report. HDFC Securities has set the target price at Rs 600 per share.
However, it also said that Jio can further disrupt Indian telecom till it achieves a critical subscriber base. Jio recent price cut and incumbents matching the same means delayed recovery in ARPU. “Nevertheless, Bharti is aggressively rolling out 4G VoLTE capacity (key strength of Jio) matching the competitive tariffs for market share retention,” it added.
Bharti Airtel operates in 17 countries across South Asia and Africa. Airtel provides GSM, 3G and 4G LTE mobile services, fixed line broadband and voice services depending upon the country of operation. Last week, CLSA and Nomura had also maintained ‘buy’ call on Aitrel. CLSA said the stock will see improved valuations. Last week, it maintained a ‘buy’ rating on the share with a target price of Rs 640 implying an upside of nearly 29 percent. Airtel’s mobile APRU for India in Q3 has surprised positively, said CLSA. The brokerage estimates Profit After Tax (PAT) to be in between 1-9 percent by FY19-21.
Nomura, too, maintained a ‘buy’ call on Bharti Airtel with target unchanged at Rs 625 per share implying an upside of nearly 26%. For Nomura, the revenue target miss is driven by India mobile and comes in at 6 percent below estimates.
Merrill Lynch offloaded shares worth Rs 1,931 crore in telecom operator Bharti Airtel, through an open market transaction, PTI reported. The shares were disposed of at an average price of Rs 499.1 apiece, valuing the transaction at Rs 1,931.23 crore, the data showed. At the end of December quarter, Merrill Lynch held 5.09 crore shares of the telecom major. The shares were bought by SRS Partners (Cayman) LLC.