Bharti Airtel nears ₹10 lakh crore m-cap amid stock surge
Bharti Airtel, a leading telecommunications service provider in India, has seen its share price reach an all-time high of ₹1,675 per share. This represents a significant increase of 62% in 2024 alone. The company's market capitalization is now approaching ₹10 lakh crore, with only a handful of Indian companies having surpassed this milestone. Over the past nine months, Bharti Airtel has added an impressive ₹3.66 lakh crore to its market value.
Stock performance reflects investor confidence
The consistent rise in Bharti Airtel's stock over the past seven months, including a 6% increase this month alone, demonstrates growing investor confidence. This trust is rooted in the company's strong position within the telecom sector and its rapid expansion into 5G services. Strategic investments in digital and network infrastructure have also played a key role in bolstering investor confidence.
Consistent growth and strategic partnerships
Bharti Airtel has consistently delivered positive returns for six consecutive years. The stock rose by 59% in 2019, 12% in 2020, and 18% in both 2021 and 2022. In the last five years, it has surged by an impressive total of 267%. Recently, Airtel Business partnered with Sparkle, a leading global operator from Italy to secure additional capacity on Blue-Raman submarine cable systems. This move is expected to enhance Airtel's global network and cater to increasing data service demands.
Customer base and ARPU growth
In FY24, Airtel's customer base exceeded 350 million mobile customers and 250 million data users, with an addition of 28.6 million new smartphone users. This growth was primarily driven by its rural expansion efforts. The company also reported an industry-leading average revenue per user (ARPU) of ₹209, which further increased to ₹211 in the first quarter of the current financial year (FY). In the broadband sector, Airtel added 1.6 million customers while also experiencing growth in its DTH customer base.
Business and data usage surge
Airtel Business reported double-digit growth, while Airtel Africa's mobile and mobile money user bases expanded by 9% and 20.7% in FY24, respectively. As of March 31, 2024, Bharti Airtel's customer base stood at 352.3 million with network minutes increasing by 7.3% to reach a staggering figure of 4,667 billion. The company had a total of 260.8 million data customers which include both its 4G and 5G users.
Brokerage firms optimistic about Airtel's future prospects
Both domestic and global brokerage firms have expressed optimism about Bharti Airtel's future prospects. Factors like tariff hikes, the 2G to 4G upgrade cycle, robust growth in its enterprise and fiber-to-the-home (FTTH) businesses, and reduced capital expenditures following the 5G rollout over the next three years are cited as reasons for this positive outlook. Global brokerage Jefferies recently reiterated its 'buy' recommendation for Airtel, raising its target price from ₹1,760 to ₹1,970 per share.
