Bharti Airtel up 6%, hits new high on tariff hike; vodafone
The stock surpassed its previous high of Rs 746 on November 15, 2021. In comparison, the S&P BSE Sensex was down 0.57 per cent at 59,298 points at 09.33 am. Bharti Airtel has outperformed the market with a gain of 11 per cent in the past one month as against a 3.9 per cent fall in the benchmark index.
The company said, “Bharti Airtel has always ensured that the Average Mobile Revenue Per User (ARPU) should be Rs 200 and ultimately Rs 300, in order to provide a reasonable return on capital that allows a financially sound business model. Is.” in a statement.
Airtel said, “We also believe that this level of ARPU will enable the substantial investment required in network and spectrum. More importantly, it will give Airtel an elbow room to roll out 5G in India.” ” Therefore, as a first step, we are undertaking to rebalance our tariff during the month of November. Accordingly our new tariffs stated below will be applicable from November 26, 2021,” the company said.
According to HDFC Securities, strong market position in the domestic mobile and non-mobile segment, diversification across businesses, healthy operations in Africa, high financial flexibility make Bharti Airtel attractive for investment. “Rising tariffs and limited competition bodes well for the company, resulting in low leverage and strong improvement in the return ratio,” a recent report said.
As far as Bhartiya and Bharti are concerned, telcos globally have not delivered adequate returns to investors, the market reset, integrated telco nature and ability to drive revenue growth in excess of nominal GDP will give Bharti investors an opportunity to grow over the next few years. Can help provide returns. The brokerage firm said growth in the B2B space could accelerate due to rising demand for new products such as cyber security, home entertainment, Airtel IQ and Airtel Ads and Africa, as risks are inherent.
Following the news, Vodafone Idea shares also rose 6 per cent to Rs 10.55 on BSE in intra-day trade due to heavy volumes.
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