Airtel: Talking about the last one year, Airtel has proved to be the king of the market in terms of largecap stocks.
Airtel Stocks Performance
Talking about the Sensex 30, so far this year, the telecom company Airtel shares have been the biggest gainers by about 18 percent. At the same time, talking about the last one year, Airtel has proved to be the king of the market in terms of largecap stocks. The stock has gained about 89 per cent or 253 points in one year, which is the highest among largecap stocks. The company’s stock rose to Rs 552 on intraday Thursday. At the same time, on Friday, intraday high of Rs 548 was high. During this time, the company’s market cap has crossed 3 lakh, which is more than SBI. Although Airtel has a loss in quarterly results, even after this, experts are looking bullish on Shaser. He believes that the company’s performance will be better in the future, which will benefit in the form of growth in the stock.
Better than others!
Airtel’s average revenue per user (ARPU) has been Rs 135, which is higher than Jio’s Rs 128.4. On the company’s network, the user is using 13.9 GB of data every month, which is the highest in the industry. The company’s data volume growth was 72 percent, which is 40 percent for Jio. Experts believe that Airtel’s revenue growth is better and margins are improving. The market share is increasing continuously, the company’s balance sheet looks strong.
According to brokerage house Motilal Oswal, telecom companies including Airtel had increased the tariff. Airtel got its benefit and ARPU has increased to Rs 135. This is more than Jio’s ARPU 128.4 rupees. According to the brokerage, raising the tariff, adding 4G subscribers, the company’s debit also increased in the December quarter. The brokerage expects the company’s revenue and ARPU to grow well in FY 2020 and 2021. The tariff hike will be a major contributor to this. The brokerage house has set a target of Rs 620, expecting 16% upside in the stock.
According to brokerage house MK Global, Airtel’s operating performance has been as expected. There is growth in wireless revenue ahead. The company’s EBIT has improved due to tariff hike. Airtel’s performance in Africa has improved. The management hopes that the true benefit of the tariff hike will be seen in the March quarter, further benefit from increased data demand.
Airtel’s market share has increased, which is a positive sign. Brokez House has set a target of Rs 591, recommending the purchase in the stock.
(Note: We have given information here based on Airtel’s quarterly results and brokerage house report. There are risks in the stock market, so be sure to consult your level before investing.)