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.
