Goldman Sachs raises Bharti Airtel price target to INR 1,920

Published 14/05/2025, 08:08
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On Wednesday, Goldman Sachs analyst Manish Adukia increased the price target on Bharti Airtel (NSE:BRTI) Ltd (BHARTI:IN) from INR 1,780.00 to INR 1,920.00, while maintaining a "Buy" rating on the stock. The revision reflects a positive outlook on the company’s earnings potential and limited downside risks.

Adukia’s assessment is based on interactions with investors who generally concur with Goldman Sachs’ view that Bharti Airtel offers strong earnings visibility. The conversations have primarily focused on the company’s valuation and the potential for further stock appreciation following its year-to-date performance. The analyst believes there is still upside potential.

Bharti Airtel’s India business, excluding towers, demonstrated robust growth with revenue and EBITDA increasing by 16% and 27% year-over-year, respectively, in the fourth quarter of FY25. Notably, the wireless segment saw a 21% rise in revenue and a 33% increase in EBITDA year-over-year. The company’s wireless revenue market share is now closely aligned with that of its competitor Jio, showing only about a 100 basis points gap.

Looking ahead, Goldman Sachs expects Bharti Airtel’s India business to achieve a 15% compound annual growth rate (CAGR) in revenue from FY25 to FY27, driven by improvements in the product mix, market share gains, and anticipated tariff hikes every one to two years, with the next increase projected in the second half of CY25. This growth is expected to result in a 21% CAGR in EBITDA due to operational leverage.

The analyst also highlighted Bharti Airtel’s valuation, noting that the company’s FY26 estimated India EV/EBITDA multiple of 13.5x and a consolidated P/E of 36x appears relatively inexpensive when compared to global telecom companies. These international peers are expected to have an EBITDA growth outlook of 2-4% over CY24-26 and are trading at approximately 6x 12-month forward EBITDA.

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