CLSA has shared its latest insights on the telecom sector following its Singapore roadshow, highlighting strong investor interest in Bharti Airtel, despite concerns over recent promoter stake sales.
Key Takeaways from CLSA’s Report
- High investor interest in Bharti Airtel, though recent promoter stake sale has raised some concerns.
- Both Jio and Airtel continue to gain market share, strengthening their competitive positions.
- Pullback in Bharti Airtel’s stock is likely to be seen as a buying opportunity by investors.
- Investor positioning in telecom stocks is expected to increase, driven by strong cash flow growth.
- Indus Towers maintains a positive outlook, with a free cash flow (FCF) yield of 6-10%.
- Reliance Jio’s potential IPO could serve as a major valuation catalyst, with the company currently valued at $119-138 billion EV at 13x EV/EBITDA.
The telecom sector remains a key focus area for investors, with Bharti Airtel and Jio expected to drive market momentum, while Indus Towers benefits from stable cash flows.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Please consult with a financial expert before making any investment decisions.
