BHARTI IN
Bharti Airtel Ltd
TMT
04/19/2020
Presented
| Date | 04/14/2020 |
| Price | ₹512.20 |
| Market Cap | $30.75B |
| Ent Value | $43.64B |
| P/E Ratio | N/A |
| Book Value | ₹134.18 |
| Div Yield | 0% |
| Shares O/S | 5,460.00M |
| Ave Daily Vol | N/A |
| Short Int | N/A |
Current
| Price | no data |
| Market Cap | no data |
| Bharti Airtel Limited operates as a telecommunications company in 18 countries across Asia and Africa. It operates through Mobile Services India, Mobile Services Africa, Mobile Services South Asia, Airtel Business, Tower Infrastructure Services, Homes Services, Digital TV Services, and Others segments. The company's product offerings include 2G, 3G, and 4G wireless services, as well as mobile commerce, fixed line services, high speed home broadband, DTH, and enterprise services, including national and international long distance services to carriers. It also provides voice, data, video, network integration, data center, and managed services, as well as enterprise mobility applications and digital media solutions. In addition, the company operates submarine cable system; and provides telecom towers and related infrastructure for various mobile operators. As of March 31, 2019, it had approximately 403 million customers across its operations. The company was formerly known as Bharti Tele-Ventures Limited and changed its name to Bharti Airtel Limited in April 2006. The company was founded in 1995 and is headquartered in New Delhi, India. Bharti Airtel Limited is a subsidiary of Bharti Telecom Limited. |
Publicly traded companies mentioned herein: Bharti Airtel Ltd (BHARTI IN), Reliance Industries Ltd (RIL IN), Vodafone Idea Ltd (IDEA IN)
Highlights
The presenter is long shares of Bharti Airtel Ltd (BHARTI IN), the third largest mobile wireless company in India by subscribers. Despite his negative outlook on the Indian economy, he believes BHARTI will benefit from strong industry growth and market share consolidation over the next couple of years. As this plays out, BHARTI’s ARPU could double or triple and Street estimates would have to be revised upward. The stock currently trades at ~₨500 per share and its EV/EBITDA multiple for FY2021 (FY2020 ended March 31, 2020) is near its historical average of 7x – 8x, but the presenter thinks its multiple will expand as the company and its ROIC grows. Even valuing the company at 7.5x EBITDA, however, yields a price target of ₨750 – ₨1000 per share over the next couple of years (i.e., EBITDA growing 50% – 100% in that time).
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