21 March 2024 – Jefferies has reiterated its positive outlook for Bharti Airtel, noting that the telecom giant is concentrating on generating a consistent, natural rise in its average revenue per subscriber. With a target price of Rs 1,300 per share, the international brokerage maintained its ‘buy’ call on Bharti Airtel, suggesting a potential gain of around 5.5%.
The telecom provider has been working to increase its ARPU via greater monetization and subscriber mix. The brokerage claims that there is unambiguous space for tariff increases, but the exact moment is yet unknown. Increasing rates will be essential to monetizing 5G and enhancing ROCEs.
According to Jefferies, Bharti Airtel management anticipates a slowdown in capital expenditures starting in FY25. The corporation wants to reduce its balance sheet’s leverage even further. On March 18, Jefferies released a list of its top 11 investments, which may provide returns at a compound annual growth rate of 15–25 percent over the next five years.
Conclusion
Bharti Airtel was one of the eleven stocks selected. With increased market share and greater ARPU, the brokerage projects a 12 to 13 percent compound annual growth rate (CAGR) in India revenue or EBITDA from 2024 to 2030.
