Bharti Airtel surges 6%, marks sharpest intra-day rally in 18 months

Bharti Airtel's stock witnessed a remarkable surge of 6% on the BSE, closing at ₹1,648.70 during Friday's intra-day trade. This marks the sharpest intra-day rally for Airtel in 18 months, with the last significant jump of 8.5% occurring on May 31, 2023. Investors looking to invest in stocks might find Airtel's recent performance noteworthy, as it reflects growing optimism in the telecom sector.

The rally coincided with S&P Global Ratings revising Airtel's outlook from stable to positive, affirming its 'BBB-' long-term issuer credit rating. This shift is supported by expectations of robust earnings growth over the next 24 months, driven by industry-wide tariff hikes in India. The telecom giant's EBITDA from Indian operations is projected to rise by 18%-20% in fiscal 2025 and a further 12%-15% in fiscal 2026, according to S&P's rationale.

Why Airtel remains a top pick

Airtel, India's second-largest telecom operator with 352M wireless customers domestically and 157M subscribers across 14 African nations, stands out due to its industry-leading ARPU and strong market presence. Analysts maintain a 'Buy' rating for Airtel with a target price of ₹1,900, citing its premiumisation strategies and digital ecosystem offerings.

For those aiming to invest in stocks with high growth potential, Airtel's focus on rural penetration, enterprise digitalisation, and home broadband expansion makes it an attractive option. Analysts anticipate that tariff adjustments, coupled with traction in adjacent businesses, will drive further growth. Additionally, moderated capital expenditure in FY25 could bolster the company's overall financial health and cash flows.

Key takeaways

• Bharti Airtel recorded a 6% intra-day surge, closing at ₹1,648.70, marking its sharpest rally in 18 months.
• S&P Global Ratings upgraded Airtel's outlook to positive, expecting earnings to grow significantly over the next two years.
• Analysts recommend Airtel as a 'Buy' due to its premium services, rural reach, and strong digital ecosystem.
• Investors seeking to invest in stocks should note Airtel's leadership in ARPU, robust financials, and potential for further growth.
• The company's moderate Capex approach and premiumisation efforts ensure a solid foundation for long-term gains.

For investors who are thinking of investing in stocks with consistent performance and strategic growth, Airtel's latest rally signals a promising opportunity.