Uncategorized

Motilal Oswal is bullish on Bharti Airtel, advises investors to buy shares for 24% return

Airtel Prepaid Tariff Hike ImpactBharti Airtel has announced to increase the prepaid mobile tariff by 20 to 25 percent, which is going to be implemented from 26 November. But after this decision of the company, many brokerage houses are advising investors to buy Airtel shares.

Buy Bharti Airtel for 24% Return

Motilal Oswal has advised to buy Bharti Airtel stock for 24 percent return. The brokerage house has set a share target of Rs 920. Bharti Airtel was trading at Rs 758 when the market closed today.

Increase in tariff will increase revenue

According to Motilal Oswal, increasing the tariff of prepaid plans by 20 to 25 percent will increase the company’s revenue and EBITA will also increase. With this, the cash flow with the company will also increase.

85% earning from prepaid plan

Let us tell you that the highest 85 percent revenue comes from prepaid plans for telecom companies in mobile phone service. The remaining 15 percent of the revenue is generated through postpaid plans. Earlier the tariff of prepaid plan was done in December 2019. Motilal Oswal expects that after the tariff hike, Bharti Airtel’s ARPU (Average Revenue Per User) will increase to Rs 181 from Rs 153 at present.

Vodafone Idea also increased tariff

Let us tell you that after increasing the prepaid tariff of Airtel, Vodafone Idea has followed in its footsteps and increased the prepaid tariff. It is believed that Reliance Jio can also announce an increase in tariff at any time.

Disclaimer: (The information provided here is for informational purposes only. It is important to mention here that investing in the market is subject to market risks. Always consult an expert before investing money as an investor. Anyone from ABPLive.com Also investing money is never advised here.)

Read also:

Paytm Share Price: Paytm’s stock closed with a gain of 10%, will the market listen to the CEO of Paytm?

Vodafone Idea Prepaid Mobile Tariff Hike: Mobile recharge became expensive, after Airtel Vodafone Idea also increased prepaid tariff

,

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
error: Content is protected !!