HSBC has maintained a ‘Buy’ rating on Bharti Airtel with a target price of ₹1,940/share, indicating a potential upside of 21.9% from the current market price (CMP) of ₹1,591.00.
Key Highlights:
- Dividend Growth:
- Dividend per share (DPS) is expected to rise by 114% year-on-year (YoY) to ₹17 in FY25, supported by an improved free cash flow (FCF) outlook.
- HSBC projects DPS to quadruple to ₹34 by FY27, with estimates 28-45% ahead of consensus for FY25-FY27.
- Free Cash Flow (FCF):
- Rising FCF is expected to bolster Bharti Airtel’s ability to reward shareholders while meeting promoter entity cash flow needs.
- Growth Levers:
- Mobile ARPU (Average Revenue Per User): Sustained growth in mobile ARPU continues to be a key driver.
- Home Broadband: Expanding subscriber base in the broadband segment adds to the growth outlook.
- Rising FCF: Further strengthens the company’s financial position and enables increased shareholder returns.
Outlook:
HSBC highlights Bharti Airtel’s robust dividend growth potential and positive outlook on free cash flow as key reasons for its bullish stance. With strong growth levers intact, the company remains well-positioned for long-term growth and enhanced shareholder value.
Disclaimer: The above analysis is based on provided data and is for informational purposes only. It does not constitute financial advice. Readers should consult their financial advisors before making investment decisions.
