BHARTIARTL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | BHARTIARTL | Market Cap | 11,49,679 Cr. | Current Price | 1,887 ₹ | High / Low | 2,175 ₹ |
| Stock P/E | 52.6 | Book Value | 244 ₹ | Dividend Yield | 0.85 % | ROCE | 8.18 % |
| ROE | 11.4 % | Face Value | 5.00 ₹ | DMA 50 | 1,876 ₹ | DMA 200 | 1,915 ₹ |
| Chg in FII Hold | -0.96 % | Chg in DII Hold | 0.99 % | PAT Qtr | 4,247 Cr. | PAT Prev Qtr | 4,545 Cr. |
| RSI | 57.9 | MACD | 0.53 | Volume | 1,34,62,177 | Avg Vol 1Wk | 92,06,327 |
| Low price | 1,747 ₹ | High price | 2,175 ₹ | PEG Ratio | 0.49 | Debt to equity | 1.16 |
| 52w Index | 32.7 % | Qtr Profit Var | -35.5 % | EPS | 38.1 ₹ | Industry PE | 41.0 |
📊 Bharti Airtel (BHARTIARTL) shows mixed fundamentals. ROE at 11.4% and ROCE at 8.18% indicate moderate efficiency, while debt-to-equity at 1.16 highlights high leverage. Quarterly PAT declined from 4,545 Cr. to 4,247 Cr. (-35.5% variation), reflecting earnings pressure. Valuations are stretched with a P/E of 52.6 compared to industry average of 41.0, though PEG ratio of 0.49 suggests growth is reasonably priced. EPS of 38.1 ₹ supports profitability, but intrinsic value indicates limited margin of safety. Dividend yield of 0.85% adds modest investor appeal. The company’s strong telecom business model and market leadership provide competitive advantage, but debt and valuation risks remain.
💡 Entry Zone: 1,820–1,830 ₹ (near support levels).
📈 Long-Term Holding Guidance: Suitable for medium- to long-term investors, but accumulation should be cautious given high leverage and stretched valuations. Hold for 18–24 months with gradual accumulation if earnings stabilize.
✅ Positive
- Strong market leadership in telecom sector.
- PEG ratio of 0.49 indicates growth is attractively priced.
- DII holdings increased (+0.99%), showing domestic institutional support.
⚠️ Limitation
- High debt-to-equity ratio (1.16) increases financial risk.
- P/E of 52.6 vs industry average of 41.0 indicates stretched valuation.
- ROCE (8.18%) and ROE (11.4%) reflect moderate efficiency.
📉 Company Negative News
- Quarterly PAT declined (-35.5%), showing earnings pressure.
- FII holdings decreased (-0.96%), reflecting reduced foreign investor confidence.
📈 Company Positive News
- DII holdings increased (+0.99%), showing domestic institutional support.
- Strong telecom subscriber base ensures steady revenue streams.
🏭 Industry
- Telecom industry remains resilient with rising data demand and digital adoption.
- Industry P/E at 41.0 highlights moderate valuations compared to Airtel’s premium.
🔎 Conclusion
⚖️ Bharti Airtel is a fundamentally stable company with strong market leadership and attractive growth pricing (PEG ratio). However, high leverage and stretched valuations limit near-term upside. Entry near 1,820–1,830 ₹ offers a favorable risk-reward setup. Best suited for cautious long-term investors willing to accumulate gradually while monitoring debt levels and earnings stability.