Bharti Airtel Q4 Results Review: Analysts Raise Target Price, Earnings Estimates

Brokerages raised Bharti Airtel Ltd.'s target price, citing solid subscriber addition and a slightly higher average revenue per user, while revising the telecom major's revenue and operating profit estimates for the next two fiscals.

The telecom major's encouraging performance continued in the fourth quarter, with strong subscriber additions, mix improvement, and higher mobile ARPU surprising positively, Jefferies said in a note on May 14.

Performance in India's mobile business was strong for the company, with robust cash flow generation, according to Morgan Stanley. "A strong increase in dividends per share reflected confidence in future cash flows."

Bharti Airtel's net profit for the fourth quarter of fiscal 2024 declined, missing analysts' estimates. The country's second-largest telecom company's net profit declined 28% sequentially to Rs 2,068 crore in the January-March quarter. The average revenue per user rose to Rs 209, compared to Rs 208 for the telecom major.

The company reported an exceptional charge of Rs 2,455.5 crore, largely on account of the devaluation of the Nigerian currency, Naira.

Bharti's 15/16% CAGR in India revenue/Ebitda along with moderating capex should support deleveraging of $6 billion over FY25–26, which in turn will boost stock returns, Jefferies said.

Jefferies has reiterated its 'buy' call and raised the target price to Rs 1,590 per share from Rs 1,300 apiece earlier, while Morgan Stanley remains 'equalweight' with a revised target price of Rs 1,330 apiece. This compares to the current market price of Rs 1,285.4 per share.

• The brokerage retains 'buy' and has revised the target price to Rs 1,590 per share from Rs 1,300 apiece earlier, implying an upside of 23.5% from the previous close.

• Strong subscriber additions and higher mobile ARPU were surprised positively.

• Lower than expected margins in Africa due to currency devaluation.

• Raised revenue/Ebitda estimates by up to 5%.

• Expects 15/16% CAGR in revenue/Ebitda over FY24-27.

• Moderating capex should support deleveraging of $6 billion over FY25/26 and boost returns.

• The brokerage retained its 'buy' rating and has revised target price to Rs 1,540 per share from Rs 1,370 apiece earlier, implying an upside of 19.7% from the previous close.

• 4Q FY24 India revenue ahead of estimates.

• Hit from currency devaluation in African business.

• Raised their FY25/26 India revenue/Ebitda estimates by 1%/3%.

• Morgan Stanley remains 'equalweight' and has revised their target price to Rs 1,330 apiece from Rs 1,190 per share earlier.

• Performance in India's mobile business was strong.

• India mobile business beat led by better subs additions and slightly better ARPU.

• Robust cash flow generation in India business.

• A strong increase in dividend per share reflected confidence in future cash flows.

• Capex turned higher than expected in 4Q and F24.