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News Topical, Digital Desk : Brokerage firms have expressed a positive outlook on shares of India's telecom company Bharti Airtel. Kotak Institutional Equities has upgraded Airtel's stock from "Add" to "Buy," predicting a 26% upside potential.
The brokerage has maintained its target price at ₹2,250, which represents a significant upside from current levels. However, despite this positive news, Airtel shares fell by about 1.5% on Thursday to trade around ₹1,755. Over the past year, the stock has fallen by about 6.5%.
"The company is continuously strengthening its business." According to Kotak, Airtel's wireless business remains strong and the company is gradually gaining market share. Average revenue per user (ARPU) is also expected to increase in the future, which could improve the company's earnings.
New customers are increasing.
The company recently crossed the 650 million (65 crore) subscriber mark, which reflects its strong customer base. Furthermore, the company plans to focus on three key areas: home broadband, enterprise services, and data centers in the coming years.
The report also states that the company's capex may decrease between fiscal years 2026 and 2028. While it previously accounted for around 30% of revenue, it may now fall to 21-22%. This will reduce the company's debt and increase the likelihood of better returns for shareholders.
Kotak believes that Airtel's stock has become attractive from an investment perspective after the recent decline. It currently trades at around 8 times its FY28 estimated EV/EBITDA.
A total of 31 analysts are tracking Airtel, of which 27 have a "Buy" rating, one has a "Hold" rating, and three have a "Sell" rating. Overall, Airtel shares are expected to rise further due to strong fundamentals and growth expectations, but currently the impact of market weakness is being seen on it as well
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