Bharti Airtel shares were in focus on Wednesday, a day after the telecom major reported its financial results for the October-December period. The Bharti Airtel stock ended 1.5 percent higher at Rs 719.6 apiece on BSE, having risen as much as 2.4 percent during the session.
After the market hours on Tuesday, Bharti Airtel reported a net profit of Rs 829.6 crore for the December quarter, down 26.8 percent on a year-on-year basis. Its quarterly revenue increased 5.4 percent on-year to Rs 29,866.6 crore, according to a regulatory filing.
Analysts in a CNBC-TV18 poll had predicted the company to post a net profit of Rs 1,220 crore and revenue of Rs 29,900 crore.
The telecom operator reported a mobile average revenue per user - a key measure of profitability for telecom operators - of Rs 163.
Should you buy, hold or sell Bharti Airtel shares after the telecom company's Q3 results? Here's what brokerages say:
Jefferies
The brokerage maintained a 'buy' rating on the stock with a target price of Rs 910.
Bharti Airtel's reported sequential rise in its India mobile average revenue per user (ARPU) in Q3 is a positive surprise, according to Jefferies.
The brokerage raised its revenue and EBITDA estimates for Bharti Airtel by up to two percent. It expects the telecom company to deliver a 20 percent EBITDA CAGR over FY22-FY24.
CLSA
The brokerage retained a 'buy' call on Bharti Airtel with a target price of Rs 915. The telecom company's quarterly revenue, as well as EBITDA, were above expectations, according to CLSA.
CLSA raised its revenue and EBITDA forecasts by 1-4 percent, though it lowered its FY22 estimate for the company's profit.
Nomura
The brokerage continued with a 'buy' rating on Bharti Airtel with a target price of Rs 855. The telecom company's higher ARPU drove further market share gains, and its subscriber mix continues to improve despite muted subscriber additions, according to Nomura.
Goldman Sachs
The brokerage retained a 'buy' call on Bharti Airtel with a target price of Rs 885.
The company's Q3 performance was in line with estimates with a high earnings visibility, according to Goldman Sachs.
The telecom company's revenue market share has expanded by 275 basis points in the last four quarters, according to the brokerage.
(Edited by : Sandeep Singh)
First Published: Feb 9, 2022 9:15 AM IST
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