Bharti Airtel shares get thumbs up from ICICI Securities, stock ends higher
Bharti Airtel stock hit an intraday high of Rs 1648.70 in the current session. Later, it closed 4.30% higher at Rs 1627.45 on BSE.
- Nov 29, 2024,
- Updated Nov 29, 2024 5:22 PM IST
Shares of Bharti Airtel gained over 5% intra day on Friday after brokerage ICICI Securities upgraded its stance from Add to Buy for the telecom stock. Bharti Airtel stock hit an intraday high of Rs 1648.70 in the current session. Later, it closed 4.30% higher at Rs 1627.45 on BSE. On September 26, the stock touched its all-time high of Rs 1778.95. Bharti Airtel stock opened lower at Rs 1537.45 today.
The large cap stock has gained 60.65 per cent this year and risen 63.48% in a year. Bharti Airtel’s market cap climbed to Rs 9.26 lakh crore in the current trading session. Total 2.85 lakh shares changed hands amounting to a turnover of Rs 46.21 crore on BSE.
Bharti Airtel stock has a one-year beta of 0.9, indicating very low volatility during the period.
In terms of technicals, the relative strength index (RSI) of Bharti Airtel stands at 40.8, signaling it's trading neither in the overbought nor in the oversold zone. The telecom stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
"Five key parameters, which influence telcos’ valuations, have shown remarkable recovery, and may either sustain or improve further. Therefore, Bharti’s EV/EBITDA valuation, in our view, may hold with more headroom to increase. Bharti’s EV/ EBITDA (Ind AS adj.) valuation at 11.3x FY26E appears to be at significant premium to APAC (excluding China) peers, which are trading at 7.1 times (median)," said the brokerage.
"However, Bharti offers much higher EBITDA CAGR of 14.8% over the next two years vs APAC peers at just 4.5%. We prefer to compare telcos as per FCF yield, wherein Bharti at 6.7% (for FY26E) is reasonable compared to 6% for APAC peers," added the brokerage.
Shares of Bharti Airtel gained over 5% intra day on Friday after brokerage ICICI Securities upgraded its stance from Add to Buy for the telecom stock. Bharti Airtel stock hit an intraday high of Rs 1648.70 in the current session. Later, it closed 4.30% higher at Rs 1627.45 on BSE. On September 26, the stock touched its all-time high of Rs 1778.95. Bharti Airtel stock opened lower at Rs 1537.45 today.
The large cap stock has gained 60.65 per cent this year and risen 63.48% in a year. Bharti Airtel’s market cap climbed to Rs 9.26 lakh crore in the current trading session. Total 2.85 lakh shares changed hands amounting to a turnover of Rs 46.21 crore on BSE.
Bharti Airtel stock has a one-year beta of 0.9, indicating very low volatility during the period.
In terms of technicals, the relative strength index (RSI) of Bharti Airtel stands at 40.8, signaling it's trading neither in the overbought nor in the oversold zone. The telecom stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
"Five key parameters, which influence telcos’ valuations, have shown remarkable recovery, and may either sustain or improve further. Therefore, Bharti’s EV/EBITDA valuation, in our view, may hold with more headroom to increase. Bharti’s EV/ EBITDA (Ind AS adj.) valuation at 11.3x FY26E appears to be at significant premium to APAC (excluding China) peers, which are trading at 7.1 times (median)," said the brokerage.
"However, Bharti offers much higher EBITDA CAGR of 14.8% over the next two years vs APAC peers at just 4.5%. We prefer to compare telcos as per FCF yield, wherein Bharti at 6.7% (for FY26E) is reasonable compared to 6% for APAC peers," added the brokerage.