Shares of Bharti Airtel edged higher in Wednesday’s session after brokerage firm CLSA maintained its ‘outperform’ rating and revised the target price to Rs 2,320 from Rs 2,310 earlier, citing strong growth visibility in its data centre business.
The stock rose 1.50% to Rs 1,809.20, gaining Rs 26.80 from its previous close of Rs 1,782.40. During the session, it traded in a range of Rs 1,802.00 to Rs 1,817.30, taking its market capitalization to approximately Rs 10.84 lakh crore. The company currently trades at a price-to-earnings ratio of 35.80 with a dividend yield of 0.88%.
CLSA highlighted that Bharti Airtel is accelerating investments in its data centre subsidiary Nxtra Data, with planned investments reaching up to US$1 billion. Nxtra aims to ramp up its capacity from 300 MW to 1 GW, targeting a 25% market share in the data centre segment.
The brokerage noted that Bharti Airtel will retain a controlling stake in Nxtra post the deal, which values the subsidiary at around US$3.1 billion. Nxtra operates a co-location business model supported by a pan-India network of 14 large and over 120 edge data centres.
For FY25, Nxtra reported revenue of Rs 2,080 crore and EBITDA of Rs 790 crore, with a profit of Rs 220 crore, reflecting steady growth in the digital infrastructure segment.
As of Wednesday’s session, the stock remained in focus amid continued investor interest in its data centre expansion strategy.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.