Bharti Airtel – A bullish breakout

Bharti Airtel is an Indian telecommunications service provider which has its presence and offers its services in 18 countries. The company provides 4G services all over India and recently launched their 5G service in a few top metropolitan cities. Airtel is the 2nd biggest mobile network operator in India as well as globally. Currently, Bharti Airtel is amongst the top 10 NIFTY50 stocks with a market cap of over ₹480,000 crores. The company has over 70,000 employees.

Quarterly Earnings Results Review

Bharti Airtel posted their Q2 earnings result with the total revenue from operations at Rs 34,527 crore. This is a 22 percent rise in comparison with the same quarter of the previous fiscal year. The company reported a consolidated net profit of Rs 2979 crore which is a 49 percent growth in comparison to Rs 1998 crore in the same quarter of the last year. Sequentially the profit growth is 20 percent from Rs 2469 crore which was reported in the first quarter.

EBITDA stands at Rs 12,064 crore in September 2022 which is up by 40 percent from Rs 8,627 crore in September 2021. EPS has increased to Rs 3.86 in September 2022 from Rs 1.93 in September 2021.

Growth in Operations

Based upon the company’s results data from operations, the voice traffic has grown by 5 percent and data traffic has grown by 21 percent. The total customer base has reportedly grown by 5 percent and stands at 50 crore which is comprised through the 18 countries in which the company runs its operations.

The average revenue per user (ARPU) for India per month was at Rs 190 during the 2nd quarter, which has risen by 24 percent annually.

Debt intensification

The consolidated net debt without inclusion of lease obligations for the company stands at Rs 157,277 crore as of September 30, 2022, which was Rs 131,341 crore as of September 30, 2021.

Brokerage Firms’ Buy Recommendations

Motilal Oswal has set a target price of Rs 1010.

YES Securities has set a target price of Rs 930.

Prabhudas Lilladher has set a target price of Rs 1058.

Sharekhan has set a target price of Rs 1010.

Technical Analysis

Bharti Airtel Weekly Candlestick Chart on Sharekhan’s TradeTiger

Bharti Airtel has finally managed to make a breakout over its previous lifetime high which had become a distribution zone at the 161.8% retracement level of Rs 742.

The next retracement level of 261.8% is at Rs 1030 which seems like a fairly achievable target for this stock as it has been consistently growing each quarter since the past 2 years. The brokerage firms’ have given their buy recommendations which are close to this upper retracement level.

The price has overextended away from the 200-day exponential moving average which indicates us that the stock is highly expensive and overbought. MFI stands at 84 points which clearly shows us the highly overbought condition of this stock.

Disclaimer: We do not endorse or encourage you to take trades or investment decisions based upon our posts/research, all of your trading and investment activities are your own and should be taken through consultation with reputed financial advisors. The analysis posted on this website has been created by involving multiple mediums which are present over the Internet.

Leave a Reply