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Stars of 2019: Here's why Bharti Airtel performed well this year after 40% decline in 2018

Updated : December 31, 2019 11:33:06 IST

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.
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