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

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bharti Airtel

Tata Comm

Bharti Hexacom

Route Mobile

Vodafone Idea

Railtel Corpn.

Tata Tele. Mah.

M T N L

Bharti Airtel PP

Megasoft

STL Networks

Why is Bharti Airtel Ltd ?

High Debt Company with a Debt to Equity ratio (avg) at 2.42 times

High Debt Company with a Debt to Equity ratio (avg) at 2.42 times

Healthy long term growth as Net Sales has grown by an annual rate of 15.68% and Operating profit at 37.60%

The company has declared Positive results for the last 8 consecutive quarters

PAT(9M) At Rs 19,547.60 cr has Grown at 27.32%
ROCE(HY) Highest at 19.46%
DEBT-EQUITY RATIO(HY) Lowest at 1.77 times

With ROCE of 19.6, it has a Fair valuation with a 4.5 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 25.86%, its profits have risen by 59.5% ; the PEG ratio of the company is 0.6

Reducing Promoter Confidence

Promoters have decreased their stake in the company by -1.4% over the previous quarter and currently hold 48.87% of the company
Promoters decreasing their stake may signify reduced confidence in the future of the business

Consistent Returns over the last 3 years

Along with generating 25.86% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

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, High Return

Absolute

Risk Adjusted

Volatility

Bharti Airtel

25.86%

1.30

19.83%

Sensex

7.07%

0.61

11.53%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.61%

EBIT Growth (5y)

29.08%

EBIT to Interest (avg)

1.96

Debt to EBITDA (avg)

2.80

Net Debt to Equity (avg)

1.56

Sales to Capital Employed (avg)

0.50

Tax Ratio

17.13%

Dividend Payout Ratio

61.64%

Pledged Shares

Institutional Holding

48.41%

ROCE (avg)

13.45%

ROE (avg)

15.49%

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

9.87

EV to EBIT

21.11

EV to EBITDA

11.69

EV to Capital Employed

4.46

EV to Sales

6.62

PEG Ratio

0.64

Dividend Yield

0.78%

ROCE (Latest)

19.64%

ROE (Latest)

26.72%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

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

20What is working for the Company

PAT(9M)

At Rs 19,547.60 cr has Grown at 27.32%

ROCE(HY)

Highest at 19.46%

DEBT-EQUITY RATIO(HY)

Lowest at 1.77 times

NET SALES(Q)

Highest at Rs 53,981.60 cr

PBDIT(Q)

Highest at Rs 30,782.80 cr.

PBT LESS OI(Q)

Highest at Rs 11,855.80 cr.

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 18,983.90 cr

OPERATING PROFIT TO NET SALES(Q)

Highest at 57.02%

-3What is not working for the Company

PAT(Q)

At Rs 6,808.00 cr has Fallen at -13.5% (vs previous 4Q average

DEBTORS TURNOVER RATIO(HY)

Lowest at 21.84 times

Loading Valuation Snapshot...

Here's what is working for Bharti Airtel

Net Sales - Quarterly

Highest at Rs 53,981.60 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 30,782.80 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 11,855.80 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 1.77 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

Operating Profit Margin - Quarterly

Highest at 57.02%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Cash and Cash Equivalents - Half Yearly

Highest at Rs 18,983.90 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

Profit After Tax (PAT) - Quarterly

At Rs 6,808.00 cr has Fallen at -13.5% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 7,868.85 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 21.84 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio