3 hrs ago
Axis Securities Targets 40% Airtel Upside on Growth Prospects
Axis Securities thinks Bharti Airtel’s share price could rise significantly.
It set a target of ₹2,530 per share, which represents a possible 40% increase.
The brokerage likes Airtel because it is gaining many new customers.
More customers are also choosing higher-priced plans and using more mobile data.
Airtel’s average revenue per user has reached ₹264.
The company is building more fibre networks and connecting more data centres.
It is also using artificial intelligence to improve its operations.
Axis believes Airtel’s African business could grow because many people there still have limited access to telecom and broadband services.
However, the article also notes that the stock has fallen over some shorter periods despite rising 185% in the last year.
Axis Securities maintains a BUY or Overweight view on Bharti Airtel with a ₹2,530 target price, implying 40% upside.
Airtel added 3.3 million revenue-earning users and 5 million smartphone data users during the quarter.
Its average revenue per user rose to ₹264, while postpaid subscribers exceeded 8% of the total customer base.
The company is expanding fibre, data-centre connectivity, artificial intelligence use and business-to-business services.
Airtel’s Africa revenue grew 5.7% sequentially in constant-currency terms in Q1FY27, and its stake in the business exceeded 79%.
- Who
- Axis Securities and Bharti Airtel.
- What
- Axis Securities maintained a BUY or Overweight rating on Bharti Airtel and set a ₹2,530 share-price target.
- Where
- Bharti Airtel operates in India, Africa, South Asia and the Channel Islands; the company is headquartered in New Delhi.
- When
- The outlook refers to September stock picks and includes Q1FY27 business results; the target extends toward 2026.
- Why
- Axis cited subscriber growth, higher ARPU, network expansion, artificial intelligence, B2B opportunities and Africa’s long-term growth potential.
Key facts
- Brokerage view
- Axis Securities maintained a BUY or Overweight rating on Bharti Airtel.
- Target price
- ₹2,530 per share.
- Implied upside
- 40%, according to Axis Securities.
- Current ARPU
- ₹264.
- Customer additions
- 3.3 million revenue-earning users and 5 million smartphone data users were added during the quarter.
- Africa performance
- Q1FY27 revenue increased 5.7% sequentially in constant-currency terms.
- One-year stock performance
- The stock rose 185% over the last year, while falling 5.5% in one month, 0.5% in six months and 1.2% in one year as stated in the article.
Quotes
Axis Securities
Domestic brokerage house providing the Airtel investment recommendation
“Bharti Airtel continues to focus on its transport network by expanding cable capacity, connecting data centres, and expanding its existing 139,000 km optical fibre backbone.”
livemint.com
“We maintain our BUY rating on the stock, driven by the company's superior margins, impressive subscriber growth, and increased 4G conversions.”
livemint.com
Sources
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