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BHARTIARTL - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 4.0
| Stock Code | BHARTIARTL | Market Cap | 12,54,239 Cr. | Current Price | 2,094 ₹ | High / Low | 2,175 ₹ |
| Stock P/E | 51.9 | Book Value | 244 ₹ | Dividend Yield | 0.76 % | ROCE | 8.18 % |
| ROE | 11.4 % | Face Value | 5.00 ₹ | DMA 50 | 2,063 ₹ | DMA 200 | 1,910 ₹ |
| Chg in FII Hold | 0.70 % | Chg in DII Hold | 0.31 % | PAT Qtr | 4,545 Cr. | PAT Prev Qtr | 3,764 Cr. |
| RSI | 50.9 | MACD | 3.12 | Volume | 44,10,359 | Avg Vol 1Wk | 49,99,557 |
| Low price | 1,560 ₹ | High price | 2,175 ₹ | PEG Ratio | 0.48 | Debt to equity | 1.16 |
| 52w Index | 86.8 % | Qtr Profit Var | 80.5 % | EPS | 47.1 ₹ | Industry PE | 51.2 |
📊 Core Financials
- Quarterly PAT improved from 3,764 Cr. to 4,545 Cr. (+80.5% growth).
- ROE at 11.4% and ROCE at 8.18% show moderate efficiency.
- Debt-to-equity ratio of 1.16 indicates high leverage.
- Dividend yield at 0.76% provides modest shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 51.9 vs Industry PE of 51.2 → Fairly valued relative to peers.
- P/B Ratio: Current Price / Book Value ≈ 8.58 → Expensive relative to assets.
- PEG Ratio: 0.48 → Strong earnings growth potential at reasonable valuation.
- Intrinsic Value Zone: ₹1,850–₹1,950 (near DMA 200).
🏭 Business Model & Competitive Advantage
- Core operations in telecom services, broadband, and digital solutions.
- Strong market share in India with expanding global footprint.
- Competitive advantage lies in scale, brand strength, and diversified offerings (mobile, enterprise, digital).
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation between ₹1,850–₹1,950.
- Long-Term Holding: Strong candidate for investors seeking exposure to telecom growth and digital transformation.
✅ Positive
- Strong quarterly profit growth (+80.5%).
- PEG ratio of 0.48 indicates attractive growth potential.
- Increase in both FII (+0.70%) and DII (+0.31%) holdings.
⚠️ Limitation
- High debt-to-equity ratio (1.16).
- ROCE at 8.18% reflects modest capital efficiency.
- P/B ratio of 8.58 suggests expensive valuation relative to assets.
📉 Company Negative News
- High leverage remains a concern for long-term sustainability.
- Capital efficiency metrics (ROCE) remain below optimal levels.
📈 Company Positive News
- Strong quarterly PAT growth (4,545 Cr.).
- Consistent increase in institutional investor confidence (FII & DII holdings).
- Stock trading near 52-week high (86.8% of range).
🌐 Industry
- Telecom sector driven by data consumption, 5G rollout, and digital services expansion.
- Industry PE at 51.2 indicates sector is richly valued.
- Competition from Reliance Jio and Vodafone Idea continues to shape market dynamics.
🔎 Conclusion
- Bharti Airtel is financially strong with robust growth prospects but carries high leverage.
- Fairly valued compared to peers, though expensive on book value metrics.
- Accumulation recommended near ₹1,850–₹1,950 for favorable long-term exposure to telecom growth.
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