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Published: May 21, 2024
Updated: May 21, 2024

Bharti Airtel Shares Near Record High: Can They Surpass Rs 1,600?

Recent Performance and Stock Movement:

Bharti Airtel shares have been approaching their all-time high, hitting an intraday peak of Rs 1,359 in the previous session before closing at Rs 1,348.20 on the BSE. This brings them close to the record high of Rs 1,364.05 reached on April 24.

Analyst Upgrades and Positive Sentiment:

Following Bharti Airtel's Q4 earnings, the stock has garnered positive attention from various analysts. Many have revised their price targets upwards, citing strong performance in India’s mobile business. One analyst noted that the results for FY24 met expectations, highlighting better subscriber additions and improved average revenue per user (ARPU).

Strategic Advantages and Future Prospects:

Analysts believe that Bharti Airtel will continue to benefit from its high-quality subscriber base and significant digital and enterprise initiatives. The company's robust 4G/5G customer additions and focus on acquiring quality customers are expected to drive its transition from a traditional telecom operator to a technology-centric enterprise in the coming years.

Financial Highlights:

In the March 2024 quarter, Bharti Airtel reported a 31.1% year-on-year decline in net profit to Rs 2,072 crore, down from Rs 3,006 crore in the same quarter last year. However, revenue grew by 4.4% year-on-year to Rs 37,599 crore, up from Rs 36,009 crore. Notably, India revenues for Q4 increased by 12.9% to Rs 28,513 crore, with mobile revenues also rising by 12.9% due to better realisations and strong 4G/5G customer growth. The ARPU for Q4 climbed to Rs 209 from Rs 193, reflecting the company’s focus on quality customer acquisition and improving customer mix.

Can Bharti Airtel Surpass Rs 1,600?

With positive sentiment from analysts and strong performance in the mobile segment, Bharti Airtel shares are well-positioned to potentially breach the Rs 1,600 mark. Continued growth in subscriber additions, enhanced ARPU, and strategic initiatives in the digital and enterprise domains will be key factors to watch as the company aims for new highs in the stock market.