Telecom major Bharti Airtel's Q2 earnings beat street estimates on stronger than expected India wireless business performance.
“Great set of numbers from Bharti and it addresses some of the investors’ concerns which were just building that there is no catalyst in the stock given that tariff hikes are not happening or they are getting delayed,” said Rajiv Sharma, head of research at SBICAP Securities.
Bharti Airtel’s Average Revenue Per User (ARPU) increased as subscribers mix goes more and more towards 4G.
“ARPU story remains intact, so if all the subscribers were to be 4G today the ARPU can straight away go to Rs 200. Then there is upgradation of plans in the subscribers as well, there is movement in post-paid, so it is a healthy addition. In this quarter Bharti has seen subscriber growth because of the recharges and some of the lost customers coming back,” Sharma added.
He is positive on the stock with a target price of Rs 690 apiece.
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