BHARTIARTL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 How I’m Thinking About This

You’re asking for a full-spectrum fundamental analysis of Bharti Airtel Ltd (BHARTIARTL), one of India’s largest telecom operators with a strong international footprint. I’m evaluating its financial strength, valuation metrics, business model, and technical indicators to determine its long-term investment potential and ideal entry point.

📊 Core Financials Breakdown

Profitability & Growth

EPS: ₹43.5 — solid earnings base

PAT Qtr: ₹3,764 Cr vs ₹9,318 Cr — -59.6% QoQ, but YoY growth of 115%

ROE: 11.4%, ROCE: 8.18% — decent, though not exceptional for a capital-intensive sector

Debt-to-equity: 1.15 — high, but manageable given stable cash flows

Dividend & Cash Flow

Dividend Yield: 0.82% — modest, but improving

Free cash flow expected to exceed ₹1 lakh crore over FY26–FY27

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Final dividend of ₹16/share announced in July 2025

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💰 Valuation Indicators

Metric Value Interpretation

P/E Ratio 52.5 Slightly overvalued vs industry PE of 46.0

P/B Ratio ~7.89 Premium to book value

PEG Ratio 0.49 Attractive — growth justifies valuation

Intrinsic Value ~₹1,850–₹1,900 Trading near fair value

Valuation is reasonable given strong growth, improving margins, and sector tailwinds.

📡 Business Model & Competitive Edge

Industry: Telecom — high capex, recurring revenue, strong regulatory oversight

Moat: Premium positioning, strong ARPU, diversified revenue from India & Africa

Catalysts

15% wireless tariff hike boosting margins

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Airtel Africa’s digital and financial services expansion

Declining capex intensity expected to improve shareholder returns

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FII holdings up (+1.31%) — rising institutional confidence

Bharti Airtel is executing a premiumisation strategy while expanding its digital footprint across geographies.

📉 Technical & Entry Zone

Current Price: ₹1,942

DMA 50/200: Trading above both — bullish trend

MACD: +5.85 — positive momentum

RSI: 60.5 — neutral to slightly bullish

📌 Suggested Entry Zone: ₹1,850–₹1,900

This range offers a better margin of safety and aligns with intrinsic value and DMA support.

🕰️ Long-Term Holding Guidance

Hold if already invested — fundamentals and growth outlook are strong

Buy on dips near ₹1,900 for long-term compounding

2026 Target Price: ₹2,285 based on brokerage estimates

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2029 Forecast: ₹2,812.53 based on long-term technical models

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⭐ Fundamental Rating

4.5

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The Financial Express

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Moneycontrol

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Goodreturns

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tradersunion.com

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