Airtel Stocks On Record High

The Supreme Court has rejected the application for extension of time limit by telecom companies on AGR dues and asked to deposit the dues. Apart from Airtel and Vodafone Idea, Tata Teleservices had filed a petition in the court seeking more time on the AGR dues. While Vodafone Idea shares fell as much as 17 per cent after a setback from the Supreme Court, Airtel shares today rose more than 5 per cent to Rs 567.40, a record high for the stock. With this, the company’s market cap went around 3.08 lakh crore. After all, what is the reason for the decrease in shares of the telecom company, even after getting a blow from the court.

With the relief given to the telecom companies on the AGR issue, now the possibility of the monopoly of only 2 companies in this sector has increased. Jio has already paid the AGR dues. At the same time, with Airtel’s base strong, it is believed that the company will easily go through the AGR issue. On the other hand, the trouble of the third big company Vodafone Idea will increase further. Airtel will benefit from this. Due to this sentiment, investors are betting on Airtel.

Share climbed 105% in 1 year

Talking about the Sensex 30, so far this year, the shares of telecom company Airtel have been the highest, rising by 107 points i.e. 23.41 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 104.53 per cent or 289 points in one year, which is the highest among largecap stocks. The company’s market cap reached 3.08 lakh crore today.

ARPU is better than Jio

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.

Airtel has better performance

According to brokerage house Motilal Oswal, telecom companies including Airtel had increased the tariff. Airtel is getting its benefit and ARPU has increased to Rs 135. This is more than Jio’s ARPU 128.4 rupees. With the increase in tariff, adding 4G subscribers, the company’s Ebit 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.

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 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.)

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