HSBC has maintained a Buy rating on Bharti Airtel, with a target price of ₹1,940, suggesting a potential upside of 18.2% from the current market price of ₹1,641.90.
Key insights from HSBC’s report:
- Mobile ARPU Growth: HSBC expects Airtel’s average revenue per user (ARPU) in the mobile segment to increase, driven by stronger pricing and customer retention.
- Broadband Expansion: The home broadband subscriber base is projected to see significant growth, contributing positively to the company’s revenue mix.
- Capex and Financial Metrics: Airtel’s capex intensity is anticipated to decline, which should boost free cash flow (FCF) and return on invested capital (ROIC) over time.
- Q2 Performance: Airtel’s India EBITDA rose by 19% year-over-year in Q2, reflecting strong performance in its core operations.
HSBC’s target price reflects optimism around Airtel’s growth prospects in mobile and broadband, combined with improving financial metrics as capex needs ease.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should perform due diligence before making investment decisions.