Buy Bharti Airtel: target of Rs 2430: ICICI Securities

Moneycontrol • 2 days ago

Original source

Key Investment Pillars

  • Bharti Airtel's focus on digital services, data centres, and cloud offerings is expected to drive growth, with a planned expansion of data centre capacity to 1GWh.
  • The company's home services segment is growing, with a 25.3% YoY increase in revenue and 22.1% YoY increase in EBITDA.
  • The enterprise segment is also performing well, with an 11.4% YoY increase in revenue and 15.1% YoY increase in EBITDA.
  • Africa continues to be a strong performer, with 6.3% QoQ revenue growth in USD terms.

Thesis Validation Checklist

  • Investors should watch for continued growth in digital services, data centres, and cloud offerings.
  • An increase in home services and enterprise revenue, along with stable margins, would be a positive sign.
  • Africa's continued strong performance, with revenue growth and stable margins, is also important.
  • Any signs of market share loss in the mobile business or rise in competitive and regulatory intensities could be a negative.
  • The company's ability to maintain its current pace of growth and expand its data centre capacity will be crucial to its future success.