Buy This Stock From Telecom Sector For High Gains, Target Price Rs 890/Share: Anand Rathi

Anand Rathi has come up with a stock idea to buy from the Telecom sector. It picked Bharti Airtel Ltd with a "Buy" call for a target price of Rs 890 apiece. Airtel is one of India's largest telecom companies having a market capitalisation of Rs 4,60,900 crore. If you buy the stock at the current market price, it can fetch a positive return of up to 16%. Check below to know more:

Bharti Airtel's Stock Outlook

On Friday, the stock gained 0.05%, ending at Rs 773.75 apiece. In a week it gained 4.5%. Whereas, it has fallen 7.37% in 3 months. The stock has gained 11.84% in 1 year. It has given 55.85% positive return. In 5 years it has given 92.32% positive return.

It recorded its 52 week high on 22 November 2022 at Rs 860.55 apiece and 52 week low on 14 July 2022 at Rs 628.75 apiece, respectively.

Q3-FY23 Result Update

According to the brokerage, Bharti Airtel Limited (BHARTIARTL) has reported consolidated revenue of ₹358 billion in Q3-FY23 as against ₹298 billion in Q3-FY22, a growth of 19.9%. Consolidated net revenues, after netting off access costs, license fees and cost of goods sold, stood at ₹302 billion, up 22.1% as compared to ₹247 billion in the corresponding quarter last year. India business revenues for the quarter stood at ₹249 billion, up 19.4% vis-à-vis ₹209 billion in the corresponding quarter last year.

On profitability front, the company's consolidated EBITDA margin stood at 51.5% at ₹184 billion in Q3-FY23 as against 49.2% at ₹147 billion in same quarter previous year, an improvement of ~230 basis points. India business EBITDA margin for the quarter was at 52.7% as compared to 49.8% in the corresponding quarter last year. The consolidated profit after tax (PAT) margin for the company stood 3.3% at ₹11.7 billion as against 2.5% at ₹7.5 billion in same quarter previous year.

Buy for a target price of Rs 890 apiece

Anand Rathi said, "We continue to believe that momentum in revenue backed by continued growth in customer additions and improved margins support the growth prospects for the company in long term. We maintain our Buy rating on the stock with a target price of ₹890 per share."

Disclaimer

The stock has been picked from the brokerage report of Anand Rathi. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.