Bharti Airtel Joins USD 100 Billion Market Cap Club

Indian telecommunications company Bharti Airtel has entered India’s USD 100 billion market cap club, driven by its mobile business, CLSA said in a report. With this India now has four companies with a market cap of over USD 100 billion. Bharti’s strong India mobile growth, backed by management execution, is driving this mega corporation with 562 million subscribers (406 million in India) across 16 countries, CLSA said.

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Key Drivers of Bharti Airtel’s Growth

The report highlighted that high-growth scalable business, strong management, and a global competitive edge are Bharti Airtel’s three key drivers. India, being the world’s second-largest mobile market by subscriber base, has seen 83 percent mobile penetration. Bharti has benefited from this growth and is a strong number two operator.

Bharti Airtel’s Market Position and ARPU Advantage

Specifically, the report highlighted the ARPU (Average Revenue Per User), which is at a 15 percent premium to Reliance Jio. Additionally, the Brand Airtel is among the most familiar in India, while the management has been at the forefront of innovation in execution and marketing, delivering results in an intensely competitive environment.

CLSA believes that Airtel, with around 352 million mobile subscribers in India, driven by strong management, will capitalise on new opportunities in cloud, data centers/enterprise services, 5G fixed wireless access (FWA) homes, and generate superior returns.

Additionally, the report noted that the risk of competition from RJio is behind it, and Bharti is at the forefront of mobile growth and new opportunities. CLSA has a Buy call rating and a target price of Rs 1,540 for Bharti Airtel, which, driven by tariff hikes, rising mobile data penetration, and 5G subscribers, will continue to see strong growth.