CLSA maintains buy on Bharti Airtel, target price Rs 565

CLSA has maintained buy rating on Bharti Airtel in the long term with a target price of Rs 565. The stock ended down 0.2% at Rs 490.05 on Wednesday while the BSE Sensex closed 231.80 points up (+0.57%) to 41,198.66.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 21131.30 crore, up 1.90% from last quarter sales of Rs 20737.90 crore and up 4.88% from last year same quarter sales of Rs 20147.80 crore. The company has reported net profit after tax of Rs -23145.60 crore in the latest quarter.

The company’s top management includes Mr.Craig Edward Ehrlich, Mr.D K Mittal, Mr.Gopal Vittal, Mr.Manish Kejriwal, Mr.Rakesh Bharti Mittal, Mr.Shishir Priyadarshi, Mr.Sunil Bharti Mittal, Mr.Tao Yih Arthur Lang, Mr.V K Viswanathan, Ms.Chua Sock Koong, Ms.Kimsuka Narasimhan, Ms.Tan Yong Choo. Company has Deloitte Haskins & Sells LLP as its auditors. As on 15-01-2020, the company has a total of 5,455,557,355 shares outstanding.

Investment Rationale

The brokerage said it awaits the outcome of Bharti’s AGR modification plea and continues to factor in 25% of AGR dues risk in its stock valuations. The brokerage has maintained its rating based on Bharti’s expected accelerating India mobile growth, with tariff hikes and 4G data adoption driving 16% CAGR in India mobile revenue and 23% in consolidated Ebitda over FY20-22.