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
 | Communication Services |
 | Telecom Services |
 | Bharti Crescent, New Delhi, India |
 | India |
 | 91 11 4666 6100 |
 | http://www.airtel.in |
Bharti Airtel Chart
Bharti Airtel Index Presence
| NIFTYSERVICE | NIFTY100WEIGHT | NIFTEQWGT | NIFTY100 | NIFTY |
| NIFTY500 | NIFTYLEGMID250 | NIFTY200 | NIFTYCONSUMP | NIFTYINFRAST |
| LIQ15 | SENSEX | BSE500 | SNSX50 | BSE100 |
| TECK | BSE200 | LMI250 | ALLCAP | LRGCAP |
| BSE100LARGECAPTMC | GREENEX | CARBONEX | TELCOM | SPBSMOIP |
| ESG100 | S&P LARGEMIDCAP |
Bharti Airtel Infographics
Bharti Airtel 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 Ratio | Sector PE | PB Ratio | Sector PB | Dividend Yield | Sector Div Yld |
| -31.06 | -24.17 | 5.77 | 11.13 | — | 0.53% |
Read more about PE ratio with infographics | Read more about dividend and dividend yield with infographics
Financials of Bharti Airtel
Income Table
| Financial Year | FY 2018 | FY 2019 | FY 2020 | FY 2021 |
| Total Revenue | 85,655.20 | 86,245.20 | 91,337.50 | 1,12,386.10 |
| EBITDA | 31,835.60 | 30,237.90 | -2,009.00 | 41,063.90 |
| PBIT | 12,592.50 | 8,890.40 | -29,103.40 | 11,659.50 |
| PBT | 3,267.00 | -1,731.80 | -43,176.60 | -3,431.50 |
| Net Income | 1,099.00 | 409.5 | -32,183.20 | -15,083.50 |
| EPS | 2.48 | 0.92 | -64.41 | -27.05 |
| DPS | 4.81 | 2.25 | 1.96 | 0 |
| Payout ratio | 1.94 | 2.44 | — | 0 |
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 Year | FY 2018 | FY 2019 | FY 2020 | FY 2021 |
| Current Assets | 33,499.00 | 32,864.20 | 76,643.20 | 54,752.90 |
| Non Current Assets | 2,16,022.00 | 2,41,162.10 | 2,82,448.10 | 2,89,664.20 |
| Total Assets | 2,49,521.00 | 2,74,026.30 | 3,59,091.30 | 3,44,417.10 |
| Current Liabilities | 78,239.90 | 93,013.40 | 1,31,487.60 | 1,11,635.90 |
| Non Current Liabilities | 92,932.80 | 96,064.90 | 1,25,474.20 | 1,51,554.60 |
| Total Liabilities | 1,71,172.70 | 1,89,078.30 | 2,56,961.80 | 2,63,190.50 |
| Total Equity | 78,348.30 | 84,948.00 | 1,02,129.50 | 81,226.60 |
| Total Liabilities & Shareholder’s Equity | 2,49,521.00 | 2,74,026.30 | 3,59,091.30 | 3,44,417.10 |
| Total Common Shares Outstanding | 443.43 | 443.46 | 555.8 | 559.51 |
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 Year | FY 2018 | FY 2019 | FY 2020 | FY 2021 |
| Net Change in Cash | 3,834.80 | 1,248.40 | 7,674.60 | -3,990.90 |
| Changes in Working Capital | -781.7 | -6,708.00 | -18,890.10 | 810.4 |
| Capital Expenditures | 26,300.80 | 29,477.50 | 20,716.80 | 27,257.60 |
| Free Cash Flow | 3,553.00 | -9,407.30 | -2,588.10 | 20,947.40 |
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
| Stock | PE Ratio | PB Ratio | Dividend Yield |
| Bharti Airtel Ltd | -31.06 | 5.77 | — |
| Vodafone Idea Ltd | -0.83 | -0.96 | — |
| Tata Communication Ltd | 29.09 | 253.26 | 1.10% |
| 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
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
| Investors | Dec-18 | Mar-19 | Jun-19 | Sep-19 | Dec-19 | Mar-20 | Jun-20 | Sep-20 | Dec-20 | Mar-21 | Jun-21 | Sep-21 |
| Promoters | 67.14 | 67.14 | 62.71 | 62.7 | 62.7 | 58.98 | 56.23 | 56.23 | 56.23 | 55.86 | 55.86 | 55.86 |
| FIIs | 17.15 | 17.61 | 22.05 | 22.33 | 16.4 | 20.29 | 20.15 | 17.57 | 17.75 | 18.57 | 18.12 | 19.87 |
| DIIs | 13.88 | 13.25 | 13.14 | 13.2 | 14.14 | 15.83 | 18.37 | 21.72 | 21.78 | 20.35 | 20.64 | 19.15 |
| Public | 1.79 | 2 | 2.07 | 1.74 | 6.71 | 4.87 | 5.21 | 4.45 | 4.18 | 5.16 | 5.32 | 5.08 |
| Others | 0.04 | 0 | 0.03 | 0.03 | 0.05 | 0.04 | 0.04 | 0.03 | 0.06 | 0.06 | 0.06 | 0.05 |
Bharti Airtel Dividend/Split
Dividend Details
| Cash Dividend | Dividend/Share | Ex Date |
| Final | ₹2.00 | 6-Aug-20 |
| Cash Dividend | Dividend/Share | Ex Date |
| Interim | ₹2.50 | 5-Nov-18 |
| Cash Dividend | Dividend/Share | Ex Date |
| Final | ₹2.50 | 2-Aug-18 |
| Cash Dividend | Dividend/Share | Ex Date |
| Interim | ₹2.84 | 30-Jan-18 |
| Cash Dividend | Dividend/Share | Ex Date |
| Final | ₹1.00 | 13-Jul-17 |
Split Details
| Rights Issue | Ratio | Ex Date |
| 1:14 Rights Issue of Equity Shares | 1:14 | 27-Sep-21 |
| Rights Issue | Ratio | Ex 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
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 Airtel | Future Stock Price |
| 2022 | 850 to 950 |
| 2025 | 1500 to 1600 |
| 2030 | 3500 to 3800 |
| 2035 | 5000 to 5500 |
| 2040 | 7000 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
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 Airtel | Future Investments |
| After 1 year | Rs.85228 |
| 5 year | Rs.172062 |
| 10 year | Rs.414065 |
| 15 year | Rs.996437 |
| 20 year | Rs.2397900 |
| 25 year | Rs.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 Ratio | Sector PE | PB Ratio | Sector PB | Dividend Yield | Sector Div Yld |
| -31.06 | -24.17 | 5.77 | 11.13 | — | 0.53% |
Check Bharti Airtel on NSE Site
Frequently Asked Questions
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
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.
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.
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.
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
