Why we are Bullish on Bharti Airtel?

Numerous brokerage houses have come for buy rating for Bharti Airtel and reasons are as enumerated below and as a disclaimer that our stock investment tips subscribers are also invested in the said stock during the coronavirus lockdown days as a long term investment bet. So, remember getting into a stock at the right time is also equally important.

• Highest ARPU in Industry
• Decent balance sheet
• Easing regulatory concern
• Rationality in upcoming 5G bidding ( 2HCY21).
• Company has reported INR 157 ARPU Vs 129
• Ebitda 10639 Cr up 44.4%
• EBIT 3328 Cr up 107.4%
• PBT 372 Cr Up 124%
• 4G Data subscriber up by 43mn, 45.3% Growth
• Mobile data traffic up 72%

We expect 45% margin in FY21 . Debt to EBITDA will improve from 4.2x to 2.7x . ROCE will improve from (7%) to +8% in FY22E.

Multiple good thing. Has to trade at 10x EV/EBITDA compared to current implied multiple of 7x compared to JIO multiple ( post fund raise) of 12.5x

Must own stock and if you do not want to hold the stocks and make money on a daily basis then you can only afford to miss the equity tips for today at your peril and if options is your cup of tea, then must check the bank nifty option tips to make a quick buck in the market.