HSBC has reiterated its bullish stance on India’s top telecom players, Bharti Airtel and Reliance Industries, while maintaining a cautious view on Vodafone Idea, citing investment delays and ongoing structural headwinds.
The brokerage has a ‘Buy’ rating on Bharti Airtel with a target price of ₹2,100 and on Reliance Industries with a target price of ₹1,590, underlining that both operators are well-positioned to benefit from market share gains in the coming quarters.
According to HSBC, Vodafone Idea’s potential delay in its planned network investments may open the door for Airtel and Jio to capture incremental market share. The brokerage highlighted that key growth drivers such as ARPU (average revenue per user) improvement and home broadband subscriber additions remain intact for both leading players.
In addition, HSBC expects capital expenditure to decline and free cash flow (FCF) to rise, further strengthening the financial health of Airtel and Jio.
However, the outlook is less favourable for Vodafone Idea, as HSBC maintained a ‘Reduce’ rating with a target price of ₹5.90, citing the telco’s challenges in executing its capex plans and maintaining competitiveness in the market.
Disclaimer: This article is based on brokerage reports and is meant for informational purposes only. Business Upturn does not provide stock advice or recommendations.
