No call drop on Bharti Airtel stock post Q1 earnings. Should you buy?

economictimes.indiatimes.com:

Airtel's improving subscriber mix, cost-led margin improvement, and improving free cash flow generation in the June quarter were strong enough reasons for the US brokerage to reiterate a buy. Hong Kong-based CLSA too maintained a 'Buy' stance on the counter, arguing for a favourable risk-to-reward ratio. The stock jumped nearly 2% on the NSE to attain its day's high of Rs 482.

Telecom major Bharti Airtel on Thursday reported a consolidated net profit of Rs 1,612 crore for the quarter ended June 2023, almost flat when compared with Rs 1,607 crore in the last-year period. The profit figure was way below the ET Now poll estimate of Rs 2,861 crore. Revenue from operations during the quarter rose 14% year-on-year (YoY) to Rs 37,440 crore.

The company reported 19% growth in its consolidated EBITDA at Rs 19,746 crore. EBITDA margins improved 271 basis points YoY to 53.7%.Jefferies: Buy | Target: Rs 1,040 Jefferies maintains a 'Buy' on Airtel shares with a revised price target of Rs 1,040 from an earlier Rs 1,020, an 18% upside from the previous target of Rs 877 at which it was recommended. Bharti Airtel's Q1 beat estimates with postpaid subscriber additions and higher margins in India mobile.

A higher growth in Africa and strong free cash flow (FCF) generation were other key highlights of the quarter. Improving subscriber mix and cost controls provides the comfort of double-digit Ebitda growth in FY24 even without a tariff hike.CLSA: Buy | Target: Rs 1,030 CLSA maintains a 'Buy' on Airtel for a price target of Rs 1,030. The Q1 India revenue and Ebitda were ahead of estimates with improved ARPU (Average Revenue Per User).