📢 5 STEPS TOWARDS WEALTH 🚀 The Indian Stock Market Way
Company:
Bharti Airtel Limited is a leading global telecommunications company with operations in 18 countries across Asia and Africa (25%). The company ranks amongst the top 3 mobile service providers globally in terms of subscribers. In India, the company's product offerings include 2G, 3G, and 4G wireless services, mobile commerce, fixed line services, high-speed home broadband, DTH, enterprise services including national & international long-distance services to carriers. They have over 47 Cr customers. 24 years back, the company has started operations and has taken huge benefit of the telecom boom in India. They reached sales of 98000 CR i.e. around 1 Lakh CR during the year 2015 & profits of 5000 CR. Investment of 1 Lakh if done during the IPO in 2002 was supposed to be 2 CR till 2015. Since the 2007 Global recession, the huge competition was seen in Indian Market which made the growth slow and profits down. During the previous 3 Years sales were in continuous -ve growth and companies once in Profits were loss-making, many companies were out of Business. Bharti was one of the strongest competitors in the Indian market. We have been recommending adding some quantities in the range of 275-200. Many people hold for the long-term, but the stock was in long-range-bound mode moving in the range of 550 to 200 for the last long 14 years due to muted sales growth.
Current Stage: Connectivity has become even more essential across all realms of life & work, education, or entertainment. POST-COVID & Since Q1 last year we saw healthy revenue growth of 15% and the growth has sustained even in H1, 9M and even for Annual Results as sales have grown by 19%. This was driven by two factors - sustained momentum of 4G customer data. Long time growth is seen in telecom due to high data usage along with new customer additions. Hence, we have recommended buying expecting Company to grow by 15% CAGR and should be back in profits this year itself. No need to book early profits with targets of 757 this year itself.
Q1 results were as expected sales growth of 15.3% while cost has just increased by 8% which made the Company back to profit margin of 4%. As expected we may see this year growth by 15% and Profits of 5-6% margin can be expected. Average ARPU has grown from 135 during the past year to 145 this year, It Shows people are spending money on telecom. The past 2 years were the loss-making year for Bharti which now again will be in profits from 2022. We expect Bharti to make profits of around 5000-7000 Cr this year.
New Buying has recommended near 400 during last quarter with the near term this year target of 757. Hence those bought or accumulated near lower level can book some 5% Profits near 757. This quarter we saw the range of 757 to 600 where buying can be done during lower channel of 600 to even 500 and some profits can be booked near 757. We may see price move towards 1600 in the next 2 years. Multi year rally could be seen here.
Buying: Considering Huge debt of around 1.5 Lakh CR buying should be done with limited quantity and weightage should be near 1-2%.
Disclosure: Do Not Buy or sell before consulting your advisor as the writer may have the position in the above-given stocks or indices
