BSE:532454

Stock Analysis Report

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Executive Summary

Bharti Airtel Limited operates as a telecommunications company in 18 countries across Asia and Africa.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Bharti Airtel's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532454's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.7%

532454

2.0%

IN Wireless Telecom

6.2%

IN Market


1 Year Return

58.3%

532454

-3.4%

IN Wireless Telecom

-19.9%

IN Market

Return vs Industry: 532454 exceeded the Indian Wireless Telecom industry which returned -4.5% over the past year.

Return vs Market: 532454 exceeded the Indian Market which returned -20.6% over the past year.


Shareholder returns

532454IndustryMarket
7 Day-5.7%2.0%6.2%
30 Day8.7%-2.7%-0.3%
90 Day7.3%-1.8%-13.4%
1 Year58.3%58.3%0.3%-3.4%-18.3%-19.9%
3 Year67.5%50.1%-1.1%-13.9%-8.2%-13.1%
5 Year53.4%36.2%-7.4%-24.3%16.4%5.5%

Price Volatility Vs. Market

How volatile is Bharti Airtel's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Bharti Airtel undervalued compared to its fair value and its price relative to the market?

20.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 532454 (₹559.05) is trading below our estimate of fair value (₹704.51)

Significantly Below Fair Value: 532454 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 532454 is unprofitable, so we can't compare its PE Ratio to the Wireless Telecom industry average.

PE vs Market: 532454 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532454's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532454 is overvalued based on its PB Ratio (4x) compared to the XA Wireless Telecom industry average (1.7x).


Next Steps

Future Growth

How is Bharti Airtel forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

115.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532454 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (7.2%).

Earnings vs Market: 532454 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 532454's is expected to become profitable in the next 3 years.

Revenue vs Market: 532454's revenue (12.1% per year) is forecast to grow faster than the Indian market (7.2% per year).

High Growth Revenue: 532454's revenue (12.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 532454's Return on Equity is forecast to be low in 3 years time (16.5%).


Next Steps

Past Performance

How has Bharti Airtel performed over the past 5 years?

-81.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532454 is currently unprofitable.

Growing Profit Margin: 532454 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 532454 is unprofitable, and losses have increased over the past 5 years at a rate of -81.3% per year.

Accelerating Growth: Unable to compare 532454's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 532454 is unprofitable, making it difficult to compare its past year earnings growth to the Wireless Telecom industry (1.6%).


Return on Equity

High ROE: 532454 has a negative Return on Equity (-30.02%), as it is currently unprofitable.


Next Steps

Financial Health

How is Bharti Airtel's financial position?


Financial Position Analysis

Short Term Liabilities: 532454's short term assets (₹766.4B) do not cover its short term liabilities (₹1,314.9B).

Long Term Liabilities: 532454's short term assets (₹766.4B) do not cover its long term liabilities (₹1,271.6B).


Debt to Equity History and Analysis

Debt Level: 532454's debt to equity ratio (115.2%) is considered high.

Reducing Debt: 532454's debt to equity ratio has reduced from 120.3% to 115.2% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if 532454 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 532454 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Bharti Airtel's current dividend yield, its reliability and sustainability?

0.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 532454's dividend (0.36%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.84%).

High Dividend: 532454's dividend (0.36%) is low compared to the top 25% of dividend payers in the Indian market (3.55%).


Stability and Growth of Payments

Stable Dividend: 532454 is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: 532454 is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 532454 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 532454's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Gopal Vittal (53yo)

6.17yrs

Tenure

₹254,170,736

Compensation

Mr. Gopal Vittal has been the Managing Director and Chief Executive Officer of India & South Asia at Bharti Enterprises Limited since April 1, 2014. Mr. Vittal serves as the Managing Director and Chief Exe ...


CEO Compensation Analysis

Compensation vs Market: Gopal's total compensation ($USD3.36M) is above average for companies of similar size in the Indian market ($USD1.08M).

Compensation vs Earnings: Gopal's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Sunil Mittal
Founder & Executive Chairman7.33yrs₹415.05mno data
Gopal Vittal
MD, CEO of India & South Asia and Executive Director6.17yrs₹254.17m0.015% 465.4m
Badal Bagri
Chief Financial Officer1.25yrs₹319.06m0.000070% 2.1m
Pankaj Tewari
Senior VP & Company Secretary2.92yrs₹10.19m0.000030% 903.7k
Ajai Puri
Chief Operating Officer of India & SAno datano data0.00014% 4.2m
Randeep Sekhon
Director of Network & Chief Technical Officer1.83yrs₹2.77mno data
Harmeen Mehta
Global Chief Information Officerno datano data0.0015% 44.0m
Komal Sharan
Head of Investor Relationsno datano datano data
Sameer Chugh
Director of Legal2.83yrs₹20.87mno data
Rohit Puri
Deputy GM of Corporate Secretarial3.42yrsno datano data

2.9yrs

Average Tenure

48yo

Average Age

Experienced Management: 532454's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sunil Mittal
Founder & Executive Chairman7.33yrs₹415.05mno data
Gopal Vittal
MD, CEO of India & South Asia and Executive Director6.17yrs₹254.17m0.015% 465.4m
Craig Ehrlich
Lead Independent Directorno data₹300.00kno data
Sock Koong Chua
Non-Executive Director19.08yrsno datano data
Manish Kejriwal
Independent Director7.75yrs₹200.00kno data
Rakesh Mittal
Vice Chairman of the Boardno datano datano data
Yong Choo Tan
Non Executive Director10.42yrsno datano data
Dinesh Mittal
Independent Directorno data₹1.00mno data
Suren Goonewardene
Non Executive Chairman of Airtel Sri Lanka 4.92yrsno datano data
Vegulaparanan Viswanathan
Independent Director6.42yrs₹900.00kno data

7.3yrs

Average Tenure

62yo

Average Age

Experienced Board: 532454's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 532454 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.3%.


Top Shareholders

Company Information

Bharti Airtel Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bharti Airtel Limited
  • Ticker: 532454
  • Exchange: BSE
  • Founded: 1995
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: ₹3.012t
  • Shares outstanding: 5.45b
  • Website: https://www.airtel.in

Number of Employees


Location

  • Bharti Airtel Limited
  • Bharti Crescent
  • 1, Nelson Mandela Road
  • New Delhi
  • Delhi
  • 110070
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532454BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2002
BHARTIARTLNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 2002

Biography

Bharti Airtel Limited operates as a telecommunications company in 18 countries across Asia and Africa. It operates through Mobile Services India, Mobile Services Africa, Mobile Services South Asia, Airtel Business, Tower Infrastructure Services, Homes Services, Digital TV Services, and Others segments. The company's product offerings include 2G, 3G, and 4G wireless services, as well as mobile commerce, fixed line services, high speed home broadband, DTH, and enterprise services, including national and international long distance services to carriers. It also provides voice, data, video, network integration, data center, and managed services, as well as enterprise mobility applications and digital media solutions. In addition, the company operates submarine cable system; and provides telecom towers and related infrastructure for various mobile operators. As of March 31, 2019, it had approximately 403 million customers across its operations. The company was formerly known as Bharti Tele-Ventures Limited and changed its name to Bharti Airtel Limited in April 2006. The company was founded in 1995 and is headquartered in New Delhi, India. Bharti Airtel Limited is a subsidiary of Bharti Telecom Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 12:55
End of Day Share Price2020/06/01 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.