Bharti Airtel Ltd (BHARTIARTL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bharti Airtel

Tata Comm

Route Mobile

Bharti Hexacom

Sar Televenture

Vodafone Idea

Railtel Corpn.

STL Networks

Tata Tele. Mah.

M T N L

Reliance Communi

Why is Bharti Airtel Ltd ?

High Debt Company with a Debt to Equity ratio (avg) of 2.03 times

High Debt Company with a Debt to Equity ratio (avg) of 2.03 times

Healthy long term growth as Net Sales has grown by an annual rate of 16.13% and Operating profit at 26.33%

The company has declared Positive results for the last 10 consecutive quarters

ROCE(HY) Highest at 20.36%
DEBT-EQUITY RATIO(HY) Lowest at 1.31 times
NET SALES(Q) Highest at Rs 58,539.10 cr

With ROCE of 22.3, it has a Fair valuation with a 4.6 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 1.78%, its profits have risen by 11.7% ; the PEG ratio of the company is 18.3

Rising Promoter Confidence

Promoters have increased their stake in the company by 1.2% over the previous quarter and currently hold 50.07% of the company
Promoters increasing their stake is a sign of high confidence in the future of the business

With its market cap of Rs 12,24,296 cr, it is the biggest company in the sector and constitutes 81.50% of the entire sector

Its annual Sales of Rs 220,049.30 are 72.50% of the industry

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Bharti Airtel should be less than 10%
Overall Portfolio exposure to Telecom - Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Bharti Airtel for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Bharti Airtel

1.78%

0.09

19.32%

Sensex

-1.97%

-0.15

13.56%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.13%

EBIT Growth (5y)

26.33%

EBIT to Interest (avg)

2.15

Debt to EBITDA (avg)

2.67

Net Debt to Equity (avg)

1.02

Sales to Capital Employed (avg)

0.51

Tax Ratio

24.83%

Dividend Payout Ratio

27.66%

Pledged Shares

Institutional Holding

47.25%

ROCE (avg)

14.58%

ROE (avg)

15.04%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

8.22

EV to EBIT

19.49

EV to EBITDA

11.00

EV to Capital Employed

4.58

EV to Sales

6.26

PEG Ratio

18.29

Dividend Yield

1.22%

ROCE (Latest)

22.29%

ROE (Latest)

19.98%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

ROCE(HY)

Highest at 20.36%

DEBT-EQUITY RATIO(HY)

Lowest at 1.31 times

NET SALES(Q)

Highest at Rs 58,539.10 cr

PBDIT(Q)

Highest at Rs 33,302.80 cr.

PBT LESS OI(Q)

Highest at Rs 13,219.60 cr.

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 30,376.80 cr

EPS(Q)

Highest at Rs 13.09

-1What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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Here's what is working for Bharti Airtel

Net Sales - Quarterly

Highest at Rs 58,539.10 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 33,302.80 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 13,219.60 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 1.31 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Earnings per Share (EPS) - Quarterly

Highest at Rs 13.09

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 30,376.80 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Bharti Airtel

Non Operating Income - Quarterly

Highest at Rs 906.60 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income