CSLA names Bharti Airtel as top pick in Indian telecom sector, bullish on 5 other stocks
Bharti Airtel as its top pick in India’s telecom sector while highlighting growth opportunities for Indus Towers, Tata Communications, Bharti Hexacom, Sterlite Technologies, and Vodafone Idea, citing tariff hikes, rising data penetration, and the anticipated Reliance Jio IPO as key catalysts.
Bharti Airtel remains the star performer, supported by its strong market position, premium subscriber base, and strategic 5G rollout. CLSA has set a target price of Rs 1,860 for Bharti Airtel, expecting its average revenue per user (Arpu) to reach Rs 290 by FY27.
Meanwhile, the brokerage issued ‘outperform’ ratings for Indus Towers and Tata Communications. Other notable recommendations include a ‘hold’ on Bharti Hexacom and Sterlite Technologies, and an ‘underperform’ on Vodafone Idea, reflecting its ongoing challenges.
CSLA highlighted Bharti Airtel’s robust execution, which saw its market share rise by 180 basis points in 2024 to 38.6%. Bharti is expected to deliver a compound annual growth rate (CAGR) of 15-17% in revenue and EBITDA for its India mobile operations, bolstered by a focus on high-end subscribers and growing adoption of 5G and home broadband services.
Indus Towers also received a target price of Rs 575 from CLSA, emphasizing its strategic role in supporting 5G infrastructure growth, which is expected to drive higher tenancies and unlock value through potential datacenter business expansion.
Stock Trading
Masterclass on Value Investing and Company Valuation
Stock Trading
Market 104: Options Trading: Kickstart
