[Infographics] Bharti Airtel | 8 Fundamental Reasons Why You Should Invest In Bharti Airtel

Bharti Airtel Limited is domiciled and incorporated in India as a public limited company with its shares being listed on the National Stock Exchange and the BSE.

The Company is principally engaged in the provision of telecommunication services in India. The company provides telecom services under wireless and fixed-line technology, national and international long-distance connectivity, and Digital TV; and complete integrated telecom solutions to enterprise customers.

All these services are rendered under a unified brand ‘airtel’. The company also owns Tower Infrastructure pertaining to telecom operations through its subsidiary and joint venture entity.

The business area of the company

The company is a leading global telecommunications company with operations in countries across Asia and Africa.

The company ranks amongst the top 3 mobile service providers globally in terms of subscribers. In India, the company’s product offerings include 2G, 3G, and 4G wireless services, mobile commerce, fixed line services, high-speed home broadband, DTH, enterprise services including national & international long-distance services to carriers.

In the rest of the geographies, it offers 2G, 3G, 4G wireless services, and mobile commerce.

Business Divisions/ Products & Services

B2C Services

  • Mobile Services: The company offers postpaid, pre-paid, roaming, internet and other value added services.
  • Homes Services: The company provides fixed-line telephone and broadband services for homes.
  • Digital TV Services: Direct-To-Home (DTH) platform offers both standard and high definition (HD) digital TV services with 3D capabilities and Dolby surround sound.

B2B Services

  • Airtel Business: The company is India’s leading and most trusted provider of ICT services with a diverse portfolio of services to enterprises, governments, carriers and small and medium business.
  • Tower Infrastructure Services: The company’s subsidiary, Bharti Infratel (Infratel), is India’s leading provider of tower and related infrastructure and it deploys, owns & manages telecom towers and communication structures, for various mobile operators.

Airtel Payments Bank:

  • Airtel Payments Bank is a differentiated bank that provides essential financial services to its customers.

Revenue Breakup

  • Mobile (India) – 49.8%
  • Africa – 25.8%
  • Airtel business – 12.9%
  • Homes – 2.1%
  • Digital Services – 2.7%
  • Towers – 6.4%

5G Launch

Bharti Airtel Ltd became the first telecom service provider to demonstrate its capability to roll out 5G wireless services in India.

Bharti Airtel Today

BHARTI AIRTEL LTD
BHARTIARTL.NS
₹ 739.90
-0.23596035%
Marketcap
4.35T
Volume
₹ 6,342,182.00
Shares
5,880,949,760
Range
₹ 737.95 - ₹ 756.50
52 Week Range
₹ 518.70 - ₹ 781.80
BHARTI AIRTEL LTD
sector
Communication Services
industryTelecom Services
addressBharti Crescent, New Delhi, India
countryIndia
phone91 11 4666 6100
websitehttp://www.airtel.in
BHARTI AIRTEL LTD
₹ 739.90
Open ₹ 742.00
High ₹ 756.50
Marketcap 4.35T
Close ₹ 739.90
Low ₹ 737.95
Volume ₹ 6,342,182.00

Bharti Airtel Chart

Bharti Airtel Index Presence

NIFTYSERVICENIFTY100WEIGHTNIFTEQWGTNIFTY100NIFTY
NIFTY500NIFTYLEGMID250NIFTY200NIFTYCONSUMPNIFTYINFRAST
LIQ15SENSEXBSE500SNSX50BSE100
TECKBSE200LMI250ALLCAPLRGCAP
BSE100LARGECAPTMCGREENEXCARBONEXTELCOMSPBSMOIP
ESG100S&P LARGEMIDCAP   

Bharti Airtel Infographics

Bharti Airtel Infographics by Kamlesh Rode
Bharti Airtel Infographics by Kamlesh Rode, created in Figma.com

Bharti Airtel Overview

Bharti Airtel Infographics overview

Key takeaways

  • Bharti Airtel stock is fundamentally good but do not have good PE during few years
  • Sector PE is also negative for Bharti Airtel stock
  • This company have PB ratio more than 5
  • Bharti Airtel stock current price is lower than its intrinsic value.
  • No red flags, Stock is not ASM/GSM list and no promoter holding is pledged.
PE RatioSector PEPB RatioSector PBDividend YieldSector Div Yld
-31.06-24.175.7711.130.53%

Read more about PE ratio with infographics | Read more about dividend and dividend yield with infographics

Financials of Bharti Airtel

Bharti Airtel Infographics - financials

Income Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Total Revenue85,655.2086,245.2091,337.501,12,386.10
EBITDA31,835.6030,237.90-2,009.0041,063.90
PBIT12,592.508,890.40-29,103.4011,659.50
PBT3,267.00-1,731.80-43,176.60-3,431.50
Net Income1,099.00409.5-32,183.20-15,083.50
EPS2.480.92-64.41-27.05
DPS4.812.251.960
Payout ratio1.942.440
EPS and DPS in ₹. Other numbers except for Payout Ratio in ₹ cr

Income Statement

Higher than Industry Revenue Growth

Over the last 5 years, revenue has grown at a yearly rate of 1.73%, vs industry avg of -1.53%

Increasing Market Share

Over the last 5 years, market share increased from 53.6% to 63.07%

Balance Sheet Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Current Assets33,499.0032,864.2076,643.2054,752.90
Non Current Assets2,16,022.002,41,162.102,82,448.102,89,664.20
Total Assets2,49,521.002,74,026.303,59,091.303,44,417.10
Current Liabilities78,239.9093,013.401,31,487.601,11,635.90
Non Current Liabilities92,932.8096,064.901,25,474.201,51,554.60
Total Liabilities1,71,172.701,89,078.302,56,961.802,63,190.50
Total Equity78,348.3084,948.001,02,129.5081,226.60
Total Liabilities & Shareholder’s Equity2,49,521.002,74,026.303,59,091.303,44,417.10
Total Common Shares Outstanding443.43443.46555.8559.51
Shares outstanding numbers in cr. Other numbers in ₹ cr

Balance Sheet

Lower than Industry Debt to Equity Ratio

Over the last 5 years, debt to equity ratio has been 155.93%, vs industry avg of 219.31%

Lower than Industry Current Ratio

Over the last 5 years, current ratio has been 42.83%, vs industry avg of 44.06%

Cash Flow Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Net Change in Cash3,834.801,248.407,674.60-3,990.90
Changes in Working Capital-781.7-6,708.00-18,890.10810.4
Capital Expenditures26,300.8029,477.5020,716.8027,257.60
Free Cash Flow3,553.00-9,407.30-2,588.1020,947.40
All numbers in ₹ cr

Cash Flow Statement

Lower than Industry Free Cash Flow Growth

Over the last 5 years, free cash flow growth has been 19.46%, vs industry avg of 21.26%

Peers of Bharti Airtel

Bharti Airtel Infographics - Peers
StockPE RatioPB RatioDividend Yield
Bharti Airtel Ltd-31.065.77
Vodafone Idea Ltd-0.83-0.96
Tata Communication Ltd29.09253.261.10%
Tata Teleservices Ltd-11.57-1.38

Key takeaways

  • Tata Communication have highest PE ratio than Bharti Airtel
  • Bharti Airtel have negative PE ratio
  • Even Tata Teleservices have negative PE ratio

Read more about PE ratio with infographics and Dividend infographics

Bharti Airtel Shareholdings

Bharti Airtel Infographics - Holdings

Promoter Holdings Trend

Total Promoter Holding

In last 6 months, promoter holding in the company has almost stayed constant

Low Pledged Promoter Holding

Pledged promoter holdings are insignificant

Institutional Holdings Trend

Mutual Fund Holding

In the last 3 months, the mutual fund holding of the company has almost stayed constant

Foreign Institutional Holding

In the last 3 months, foreign institutional holding of the company has almost stayed constant

InvestorsDec-18Mar-19Jun-19Sep-19Dec-19Mar-20Jun-20Sep-20Dec-20Mar-21Jun-21Sep-21
Promoters67.1467.1462.7162.762.758.9856.2356.2356.2355.8655.8655.86
FIIs 17.1517.6122.0522.3316.420.2920.1517.5717.7518.5718.1219.87
DIIs 13.8813.2513.1413.214.1415.8318.3721.7221.7820.3520.6419.15
Public 1.7922.071.746.714.875.214.454.185.165.325.08
Others 0.0400.030.030.050.040.040.030.060.060.060.05

Bharti Airtel Dividend/Split

Bharti Airtel Infographics - Dividend/split

Dividend Details

Cash DividendDividend/ShareEx Date
Final₹2.006-Aug-20
Cash DividendDividend/ShareEx Date
Interim₹2.505-Nov-18
Cash DividendDividend/ShareEx Date
Final₹2.502-Aug-18
Cash DividendDividend/ShareEx Date
Interim₹2.8430-Jan-18
Cash DividendDividend/ShareEx Date
Final₹1.0013-Jul-17

Split Details

Rights IssueRatioEx Date
1:14 Rights Issue of Equity Shares1:1427-Sep-21
Rights IssueRatioEx Date
19:67 Rights Issue of Equity Shares“19:67”23-Apr-19

Read more about dividend and dividend yield with infographics

Strength and Limitations

Strength

  • The Company has been maintaining an effective average operating margins of 34.72% in the last 5 years.
  • The company has an efficient Cash Conversion Cycle of -111.53 days.
  • The company has a high promoter holding of 55.86%.

Limitations

  • The company has shown a poor profit growth of -782.67% for the Past 3 years.
  • The company has shown a poor revenue growth of 6.23% for the Past 3 years.
  • Company has a poor ROE of -22.08% over the past 3 years.
  • Company has a poor ROCE of -7.96% over the past 3 years

Expert Forecast

Bharti Airtel Infographics - Expert forecast

The stock forecast of Bharti Airtel stock for the year 2022

HIGH

Rs. 928

MEDIAN

Rs. 810

LOW

Rs. 661

Future stock price targets of Bharti Airtel stock

Target of Bharti AirtelFuture Stock Price
2022850 to 950
20251500 to 1600
20303500 to 3800
20355000 to 5500
20407000 to 8000

Please Note

All the views and contents mentioned in this blog are merely for educational purposes and are not recommendations or tips offered to any person(s) with respect to the purchase or sale of the stocks / futures. I do not accept any liability/loss accruing from the use of any content from this blog. All readers of this blog must rely on their own discretion and neither any analyst nor any publisher shall be responsible for the outcome.

Stock Forecast Predictions

Bharti Airtel Infographics - Predictions

With the calculations on the basis of CAGR, the long-term investment in Bharti Airtel stock comes very amazing numbers. Look at the table below (Investment value 71500)

Prediction of Bharti AirtelFuture Investments
After 1 yearRs.85228
5 yearRs.172062
10 yearRs.414065
15 yearRs.996437
20 yearRs.2397900
25 yearRs.5770486

Future values are calculated using 19.3% CAGR (Bharti Airtel)

Read How Rs.10,000 converted into 1770 Crores Wipro case study?

Conclusion

Bharti Airtel Ltd is one of the world’s leading providers of telecommunication services with a presence in 18 countries representing India, Sri Lanka, 14 countries in Africa. But after launch of Jio Telecomm services Airtel had to reduce their usage cost by which their business was in loss.

Day by day, the way Bharti Airtel is competing with Jio shows how exceptionally well this company is doing and surely this company will be a multi-bagger in the future for sure.

Let’s look at the current metrics of Bharti Airtel Stock

PE RatioSector PEPB RatioSector PBDividend YieldSector Div Yld
-31.06-24.175.7711.130.53%

Check Bharti Airtel on NSE Site

Frequently Asked Questions

Que: By increasing tariff of Airtel affects share price?

Ans: Increase will not affect the price of Bharti Airtel stock. People were used to
charging more for recharge in mobile in the past. The only thing that affect this stock is its fundamental performance and bear bull game in the market

Que: I am holding 200 shares of Bharti Airtel when and how much shares I will get and can I sell existing 200 shares now

Ans: You have bought 200 stocks means you have atleast 200 shares to sell. But after split or right issue your number of shares will increase.

Que: I want to invest in Bharti Airtel shares.is this possible what is the current share of this company represents

Ans: This company is related to Telecomm service. This sector is now booming and the graph of Bharti Airtel Increasing day by day. No doubt it will be a multi-bagger in the future.

Que: Is Bharti Airtel a good buy?

Ans: It is always good to invest in fundamentally strong stock because these companies are long-time players. Looking at the ratios of Bharti Airtel, this company is fundamentally strong and a good option for long-term investments.

Que: Who is the founder and owner of Bharti Airtel?

Ans: Mr. Sunil Bharti Mittal is the founder and owner of this company. Bharti Airtel company was founded on 7th July 1995 and its parent organization is Bharti Enterprises

Why Stock forecast by Kamlesh Rode?

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