Goldman Sachs (GS) has reiterated its bullish stance on Bharti Airtel, one of India’s leading telecommunications companies, with a “Buy” call and a target price of ₹1,700 per share. The investment bank’s optimistic outlook is underpinned by Airtel’s strong growth prospects and improving financial metrics.
Key Highlights of the Goldman Sachs Report:
- Premium Valuation Justified: GS argues that Bharti Airtel’s strong growth coupled with an inflecting free cash flow (FCF) and returns profile warrants a premium valuation.
- Sustained Growth Tailwinds: The report forecasts continued growth momentum for Airtel, driven by:
- Ongoing market share gains, with an expected increase of 200 basis points over the next three years
- Organic growth levers within the company
- Anticipated future tariff hikes in the telecom sector
- Robust Revenue Projections:
- India Revenues: Expected to grow at a compound annual growth rate (CAGR) of 16% from FY2024 to FY2027
- Consolidated Revenues: Projected to grow at a 14% CAGR over the same period
- Strong EBITDA Growth:
- India EBITDA: Forecast to grow at an impressive 21% CAGR during FY2024-2027
- Consolidated EBITDA: Expected to increase at a 17% CAGR
Disclaimer: This article is based on a Goldman Sachs report and is for informational purposes only. It is not financial advice. Investments carry risk, including potential loss of principal. Past performance doesn’t guarantee future results. Readers should conduct their own research and consult a financial advisor before making investment decisions.
