BHARTIARTL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.2

Bharti Airtel (BHARTIARTL) stands tall in India’s telecom landscape with a dominant position, solid financials, and strong institutional interest. Let’s decode its fundamentals and assess its long-term appeal.

📊 Core Financial Snapshot

EPS: ₹58.8 — robust earnings base, indicating strong profitability.

ROE: 23.2% | ROCE: 13.5% — impressive returns, especially in a capital-heavy industry.

Debt-to-Equity: 1.88 — high, but typical for telecom; manageable given cash flow consistency.

PAT Qtr: ₹11,128 Cr vs ₹8,332 Cr — 186% jump shows powerful bottom-line expansion.

Dividend Yield: 0.83% — modest, suited more for growth-oriented investors.

💬 Airtel’s earnings and capital efficiency place it among the top-performing telecom stocks globally.

📈 Valuation Insights

P/E Ratio: 50.7 — matches industry average, indicates fair relative pricing.

P/B Ratio: ~9.64 (₹1,918 ÷ ₹199) — pricing in brand strength and future cash flows.

PEG Ratio: 0.61 — undervalued for its growth trajectory; signals opportunity.

Intrinsic Value: Likely close to current market price, with upside if growth sustains.

📡 Business Model & Competitive Advantage

Segment: Telecom services (mobile, broadband, enterprise, Africa operations)

Edge

Massive subscriber base with ARPU growth potential.

Leading in 5G deployment and fiber infrastructure.

Diversified geography via Africa operations.

Challenges

Regulatory risks and spectrum costs.

Intense competition from Jio and Vi.

Elevated debt levels.

📢 FII interest ↑ (+1.31%) and resilient profitability suggest strong investor confidence.

💹 Technical View

RSI: 46.8 — neutral; room for consolidation or move.

MACD: –5.07 — mild bearish trend.

Volume: Slight dip vs weekly average — potential for quiet accumulation.

🎯 Suggested Entry Zone

₹1,820 – ₹1,875: Accumulation zone based on support near DMA levels.

₹1,750 – ₹1,780: High-conviction zone near DMA200 if the broader market pulls back.

🌐 Long-Term Holding Thesis

Ideal for a 5–8 year horizon, especially for investors bullish on

Digital consumption surge and enterprise connectivity.

Monetization of 5G and fiber networks.

Africa operations providing emerging market upside.

Want to see how Bharti stacks up against Reliance Jio (via RIL) or Vodafone Idea in a full telecom war-room comparison? It might help you dial into the strongest signal. 📶📊 Let me know if you're ready for that call.

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