⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BHARTIARTL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | BHARTIARTL | Market Cap | 10,57,969 Cr. | Current Price | 1,855 ₹ | High / Low | 2,175 ₹ |
| Stock P/E | 48.4 | Book Value | 244 ₹ | Dividend Yield | 0.86 % | ROCE | 8.18 % |
| ROE | 11.4 % | Face Value | 5.00 ₹ | DMA 50 | 1,945 ₹ | DMA 200 | 1,940 ₹ |
| Chg in FII Hold | 1.33 % | Chg in DII Hold | 0.14 % | PAT Qtr | 4,247 Cr. | PAT Prev Qtr | 4,545 Cr. |
| RSI | 41.6 | MACD | -47.1 | Volume | 65,67,460 | Avg Vol 1Wk | 1,07,90,276 |
| Low price | 1,628 ₹ | High price | 2,175 ₹ | PEG Ratio | 0.45 | Debt to equity | 1.16 |
| 52w Index | 41.6 % | Qtr Profit Var | -35.5 % | EPS | 38.1 ₹ | Industry PE | 37.3 |
📊 Financials
- Revenue Growth: Stable, but PAT declined from 4,545 Cr. to 4,247 Cr. (-35.5% QoQ)
- Profit Margins: Moderate, EPS at 38.1 ₹
- Debt Ratios: Debt-to-Equity 1.16, relatively high leverage
- Cash Flows: Strong, supported by recurring telecom revenues
- Return Metrics: ROE 11.4%, ROCE 8.18% — modest efficiency
💹 Valuation
- P/E Ratio: 48.4 (premium vs Industry PE 37.3)
- P/B Ratio: ~7.6 (high, reflects brand strength)
- PEG Ratio: 0.45 (attractive, undervalued relative to growth)
- Intrinsic Value: Current price (1,855 ₹) below DMA 50 (1,945 ₹) & DMA 200 (1,940 ₹), showing technical weakness
🏢 Business Model & Competitive Advantage
- Leading telecom operator with strong subscriber base
- Competitive advantage in mobile, broadband, and enterprise services
- Strong brand equity and diversified revenue streams
- High debt levels remain a concern
📈 Entry Zone Recommendation
- Entry Zone: 1,750–1,850 ₹ (near support levels, RSI at 41.6)
- Long-Term Holding: Attractive for investors seeking exposure to telecom growth, but leverage and valuation risks exist
✅ Positive
- Strong market leadership in telecom
- PEG ratio indicates undervaluation relative to growth
- FII holding increased (+1.33%)
- DII holding slightly increased (+0.14%)
⚠️ Limitation
- High debt-to-equity ratio (1.16)
- P/E ratio above industry average
- Quarterly profit declined (-35.5%)
📉 Company Negative News
- Quarterly PAT declined from 4,545 Cr. to 4,247 Cr.
- Technical weakness with price below DMA 50 & 200
📈 Company Positive News
- FII holding increased (+1.33%)
- DII holding slightly increased (+0.14%)
- PEG ratio suggests undervaluation relative to growth
🏭 Industry
- Telecom industry growing with data demand and digital adoption
- Industry PE at 37.3, Bharti Airtel trades at a premium
🔎 Conclusion
Bharti Airtel is a telecom leader with strong brand equity and diversified services. While fundamentals are stable, high debt and premium valuations pose risks. The PEG ratio indicates undervaluation relative to growth, making entry around 1,750–1,850 ₹ attractive. Long-term investors can hold for telecom sector growth, but should monitor debt levels and profitability trends.