Bharti Airtel shares rebound 58% from 52-week low; more upside ahead?

Shares of Bharti Airtel Ltd have gained 58% from their 52-week low in a year. The stock, which touched a yearly low of Rs 738.70 on March 29, 2023, was trading at Rs 1,169 in the current session. Bharti Airtel stock opened higher at Rs 1174.40 today.

The Airtel stock was trading flat in early deals against the previous close of Rs 1168.70.  The telecom stock hit a record high of Rs 1200.95 on January 25, 2024.

The large cap stock is up 15 per cent this year. In a year, the Airtel stock has risen 52%.

Bharti Airtel’s market cap slipped to Rs 6.58 lakh crore in the current trading session. Total 13.58 lakh shares changed hands amounting to a turnover of Rs 158.87 crore on BSE.

Aditya Gaggar, Director of Progressive Shares said, "We are bullish on Bharti Airtel as the stock has given a strong breakout from a Bullish Flag and Pole formation, and as per the pattern, the approximate target is Rs 1340."

Axis Securities has a target of Rs 1,400 on Bharti Airtel.

The brokerage has retained its 'BUY' rating on the telecom stock due to the company's superior margins, impressive subscriber growth, and increased 4G conversions. The stock is valued at Rs 1,400 per share through a SOTP valuation, suggesting a substantial upside from the current market price, it said.

Bharti Airtel stock has a one-year beta of 0.2, indicating very low volatility during the period.

In terms of technicals, the relative strength index (RSI) of Bharti Airtel stands at 66, 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.

The telco reported a 54% rise in consolidated net profit at Rs 2,442 crore for the quarter ended December 31, 2023 against consolidated net profit of Rs 1,588 crore in the year-ago period.

Consolidated revenue from operations climbed 6% to Rs 37,900 crore in Q3FY24 compared to Rs 35,804 crore in Q3FY23.

The telco’s average revenue per user (ARPU) rose marginally to Rs 208 in Q3FY24 compared to Rs 203 in Q2FY24.

 

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