Bharti Airtel Shares Expected to Gain Regardless of What Happens to Vi: Credit Suisse

Bharti Airtel is one of the biggest network service providers in the country. The telco can gain a lot from the exit of Vodafone Idea and even gain substantially even if Vi stays in the market with the help of a relief package from the government.

Highlights

  • Airtel’s shares can gain up to 62% in the near term on account of Vi’s financial woes
  • Bharti Airtel’s share price will indeed go up in the near term
  • Reliance Industries can grow by 10% as well

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Bharti Airtel

Bharti Airtel, the second-largest telecom operator, may see a huge gain because of the expected downfall of Vodafone Idea. Credit Suisse, a brokerage company, said Airtel’s shares could gain up to 62% in the near term on account of Vodafone Idea’s (Vi) financial woes. The brokerage said Vi’s financial conditions are unlikely to get better regardless of any relief measures provided by the government, and this will add to the growth of Bharti Airtel.

Credit Suisse has set a target price of Rs 775 for Bharti Airtel, while for its biggest competitor, Reliance Jio, the brokerage has set a target price of Rs 2,020. As for Vodafone Idea, the brokerage has set a target of Rs 6.

Bharti Airtel Shares May See Huge Gain on Account of Vi

According to Credit Suisse, if only two private operators exist (Bharti Airtel and Reliance Jio), Airtel’s subscriber market share can increase to 40%, and its average revenue per user (ARPU) might increase to Rs 200, which might take the telco’s per-share price up to Rs 1,010.

The brokerage has put a ‘good days ahead’ sign on the telco’s share price future. Regardless of what happens, be it a two-player market or a three-player market with relief measures, Airtel is bound to grow. Further, Airtel will also benefit from the relief package that comes in for the industry.

Factoring all of this, it is safe to say that Bharti Airtel’s share price will indeed go up in the near term. Note that this is not investment advice, and this is not the endorsement of a stock. You should do your due diligence before investing in a stock.

The brokerage said that if the government takes control of Vodafone Idea, then Airtel’s share price can touch Rs 840. With two players in the market, Reliance Industries can grow by 10% as well.

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