Unlocking Value: Bharti Airtel - A Buy Recommendation at Current Market Price (10/09/2020)

By Koduri Anurag - September 10, 2020


Bharti Airtel has been doing extremely well in the last couple of quarters and I am confident that it will continue to do well in the upcoming quarters as well. Now, let's take a closer look at Airtel's financials and revenue. Most of Airtel's revenue comes from India itself and 4G users are the main source of revenue for the company. Airtel's services are also available in other countries. Only a few of you may have heard about Airtel's position as the largest service provider in the country of South Africa.

In addition to 4G services, Airtel also offers DTH services and Internet Broadband. When it comes to basics, Airtel currently trades around 500 on the stock market and I am hopeful that this stock will yield good returns in the near future.


1) The Telecom sector has been one of the worst-affected industries globally. Just a decade ago, there were more than 25 telecom companies operating in India. Today, there are only two major telecom companies in the country, Reliance jio and Bharti airtel. There are also a few smaller telecom companies, such as Vodafone-Idea, BSNL, etc. This shows how resilient these two companies have been in the face of the crisis.

2) As we see prosperous growth in digitalization and development, the Telecom sector plays a very important role to boost the countries economy.

3) After the AGR case, the telecom industry in India has turned into a duopoly. I can assure you that in the case of the adjusted gross revenue (AGR), the judgment of the supreme court is in favour of Reliance Jio (RIL) and Airtel (Airtel). However, in the case of Vodafone Idea (VI), the company will have to fight tooth and nail to survive and avoid bankruptcy.

4) We all know that Airtel is a true winner in Average Revenue Per User (APRU). It is known for its Industry best. Even in the near term Jio or VI can match or beat it.

5) We have faith in the governance of Airtel and in its High-quality Infrastructure. While there has been some insider trading going on, I see this as another movement in the right direction.

6) As the number of work-from-home users continues to grow every day, the strong position of Airtel in broadband and wireless will be very attractive and beneficial for the company.

7) I am expecting at least 20% growth in tariffs which also helps Airtel to improve their EBITDA.

8) Upcoming 5G is also good news to the company and its deployment in India is just a couple of years away. Along with Jio, Airtel is the only company that gets benefited. We also know that the government collaborating with Airtel's ongoing project of underwater fibers from Tamilnadu to Andaman provides high-speed data to the people living in Andaman. As of now, we only have a satellite means of communication which is outdated with a lack of speed. Airtel gets very much benefited by this history-making event.

9) Data traction of the company is very challenging and there is steady and great growth in postpaid subscribers.

10) Recently we have seen great effort done by the management by announcing new tariffs to compete with Jio. Definitely, it will attract more customers to look at Airtel with those cost-effective subscriptions.

At last, I believe that it's not the number of customers who decide the companies future but the number of trusted users. This means that there are more users on Jio than on Airtel, but as long as Airtel keeps providing their trusted customers, it will return to form. All said and done, some fools are still interested in buying vodafone idee(VI) because it has a very low Current Market Price (CMP) around 11.This post is for risk-takers and wealth-building long-term users only.

My last successful investment suggestions were with Divis Laboratories which has given more than double(2x) return in just few months. I will be also writing about it in a dedicated post. This is my first post in "ANURAG INVESTMENTS" and for more such recos you can directly access them at kodurianurag.com/search/label/AnuragInvestments or search with anurag investments in my website.

Disclaimer: The views and investment tips expressed by me on kodurianurag.com are my own and copying them is legally not accepted. Please take advice from certified experts before investing.

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