Telecom operator Bharti Airtel announced revision in its prepaid plans and a price hike for its entry-level plans on July 28.
The company has discontinued the Rs 49 entry-level prepaid recharge. The prepaid packs will now start from Rs 79. It is about a steep 60 percent increase in the prepaid base plan.
The street is very bullish on the prospects of Bharti Airtel.
According to brokerages, on an aggregate basis, the street expects the Indian mobile company’s revenues to get a boost of 3-4 percent, while its EBITDA is expected to be up by about 5-6 percent.
The expectation is that Vodafone Idea will go ahead and follow Bharti Airtel by upping the base level prepaid tariff.
Goldman Sachs believes this is the most significant catalyst in terms of tariffs that we have seen for Bharti Airtel since 2019. The firm has put a target price of Rs 665 on Bharti Airtel.
UBS has a target price of Rs 665 and Citi also has a buy call on Bharti Airtel with a target price of Rs 660.
Watch the accompanying video of CNBC-TV18’s Reema Tendulkar for more details.