As the year ends today, we take a look at some stocks that performed throughout the year. One such stock is Bharti Airtel. Here are five reasons that led to the stock performing well this year:
- 2018 wasn’t a great year for Bharti Airtel as the stock fell 40 percent. Therefore, the 2019 performance included recovering from the losses.
- What benefited the stock was its competitor – Vodafone Idea – weakening and the street seeing the possibility of the industry heading towards a duopoly. Add to that the statements from Kumar Mangalam Birla. Birla said they will have to shut shop if there is no government relief.
- The SC verdict on the adjusted gross revenue (AGR) has affected both Vodafone Idea and Bharti Airtel. However, Bharti Airtel's balance sheet is a lot stronger. So the street believes that Bharti Airtel will be able to make the payments even if there is no government relief.
- The companies also announced tariff hikes and investors, as well as analysts, believe that more tariff hikes are likely to come in future.
- Additionally, the spectrum dues for two years being deferred came as a relief for the companies.