HSBC has reaffirmed its ‘Buy’ rating on Bharti Airtel, setting a target price of ₹1,985 per share, suggesting a potential upside from the current market price of ₹1,727.40. The rating comes on the back of a recent management meeting where the telecom major reiterated confidence in its core growth drivers.
HSBC noted that Bharti Airtel continues to benefit from rising mobile average revenue per user (ARPU), expanding home broadband subscriber base, improving free cash flow (FCF), and growing dividend payouts. These factors collectively strengthen the company’s long-term fundamentals.
A key point of discussion was the timing of the next industry-wide tariff hike, which the company believes is essential to ensure adequate return on capital. Bharti Airtel emphasized the need for another round of tariff increases to support sustainable industry economics.
Additionally, the company expects its capital expenditure to decline in FY25 compared to FY24, with a further capex unwinding likely in FY26, indicating a potential boost to cash flows and returns in the coming years.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making any investment decisions.
