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Last Updated on: 22 May, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 532454 | NSE: BHARTIARTL

Fundamental Analysis of Bharti Airtel Ltd

Basic Stock Data

Last Updated: May 13, 2024, 2:55 pm

Market Cap 7,64,510 Cr.
Current Price 1,286
High / Low1,364/784
Stock P/E67.0
Book Value 138
Dividend Yield0.31 %
ROCE12.3 %
ROE12.0 %
Face Value 5.00
PEG Ratio0.50

Data Source: screener.in

Competitors of Bharti Airtel Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Mahanagar Telephone Nigam Ltd 2,345 Cr. 37.252.4/18.9 3530.00 %7.04 %% 10.0
Tejas Networks Ltd 19,770 Cr. 1,1581,246/641314 1840.00 %3.68 %2.06 % 10.0
Uniinfo Telecom Services Ltd 34.9 Cr. 32.657.0/20.413.7 31.00.00 %3.09 %1.91 % 10.0
Reliance Communications Ltd 456 Cr. 1.652.49/1.00 2820.00 %%% 5.00
OnMobile Global Ltd 787 Cr. 74.1128/59.651.6 61.20.00 %4.66 %2.34 % 10.0
Industry Average4,678.58 Cr260.7175.86182.240.00%3.69%1.26%9.00

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales26,51825,74726,85428,32629,86731,50032,80534,52735,80436,00937,44037,04437,900
Expenses14,68513,41513,87314,51615,16415,46016,27516,93317,72017,31217,84217,53018,085
Operating Profit11,83212,33212,98013,81014,70316,04016,52917,59418,08518,69719,59819,51419,815
OPM %45%48%48%49%49%51%50%51%51%52%52%53%52%
Other Income5,2991,0527351,4308531,638355559-412886-2,478-6541,013
Interest3,9723,8614,2263,9644,3674,0594,5114,9404,6865,1635,6145,1866,645
Depreciation7,5037,5027,7148,2478,5478,5838,7818,9479,2989,4069,6549,73410,074
Profit before tax5,6572,0211,7763,0292,6425,0373,5924,2653,6895,0141,8533,9404,108
Tax %76%25%47%34%38%26%31%30%29%16%18%47%30%
Net Profit1,3501,5119411,9981,6513,7152,4692,9792,6144,2261,5202,0932,876
EPS in Rs1.461.290.481.931.413.412.733.862.855.392.892.394.34

Last Updated: April 29, 2024, 3:29 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 29, 2024, 3:29 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales71,50676,94785,86496,10196,53295,46882,63980,78087,539100,616116,547139,145148,392
Expenses47,96553,98759,35262,49962,54860,13852,56055,01650,93055,33759,01367,87170,768
Operating Profit23,54122,96026,51233,60233,98435,33030,07925,76436,61045,27957,53471,27477,624
OPM %33%30%31%35%35%37%36%32%42%45%49%51%52%
Other Income4281,1592,8811,2434,8581,7131,7564,474-37,775-4,2154,6561,019-1,233
Interest4,0834,5195,8794,4468,5469,5479,32610,62213,99215,09116,61619,30022,608
Depreciation13,36814,81515,65019,85817,45019,77319,24321,34827,69029,40433,09136,43238,868
Profit before tax6,5184,7857,86410,54012,8467,7233,267-1,732-42,846-3,43212,48316,56114,915
Tax %35%53%62%52%46%45%33%197%28%-260%33%26%
Net Profit4,2582,2673,0195,0486,8934,2412,1841,688-30,664-12,3648,30512,28710,716
EPS in Rs8.154.325.048.4111.056.912.000.74-55.06-25.637.2314.9715.01
Dividend Payout %9%17%26%33%9%11%194%244%-3%0%39%27%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-46.76%33.17%67.21%36.55%-38.47%-48.50%-22.71%-1916.59%59.68%167.17%47.95%
Change in YoY Net Profit Growth (%)0.00%79.93%34.04%-30.66%-75.02%-10.03%25.79%-1893.88%1976.27%107.49%-119.22%

Growth

Compounded Sales Growth
10 Years:6%
5 Years:13%
3 Years:14%
TTM:8%
Compounded Profit Growth
10 Years:16%
5 Years:122%
3 Years:-2%
TTM:37%
Stock Price CAGR
10 Years:16%
5 Years:32%
3 Years:37%
1 Year:67%
Return on Equity
10 Years:9%
5 Years:12%
3 Years:11%
Last Year:15%

Last Updated: May 13, 2024, 2:55 pm

Balance Sheet

Last Updated: April 29, 2024, 3:29 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital1,8991,8991,9991,9991,9991,9991,9991,9992,7282,7462,7952,8372,858
Reserves48,71248,42357,75737,77864,77165,45867,53669,42474,41756,20763,75974,72674,627
Borrowings69,02366,73675,89683,415100,646107,288111,334125,428148,228162,785169,678226,020217,359
Other Liabilities36,26540,91245,84058,74757,05657,57868,65377,176133,718122,679124,975140,974147,253
Total Liabilities155,900157,970181,492181,939224,472232,322249,521274,026359,091344,417361,207444,557442,096
Fixed Assets129,168125,674140,614124,279172,293178,235187,200200,832229,256223,480244,083277,394306,477
CWIP4,4142,992017,4155,70210,8389,7519,6344,2825,7265,95549,42513,948
Investments1,8367,71015,53110,75211,97714,33916,15915,71125,47627,55029,34932,95431,518
Other Assets20,48221,59425,34729,49434,50028,91036,41147,850100,07787,66181,82084,78490,153
Total Assets155,900157,970181,492181,939224,472232,322249,521274,026359,091344,417361,207444,557442,096

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 22,59322,60826,23328,05927,94228,28029,85420,07018,12948,20555,01765,325
Cash from Investing Activity -18,380-18,676-25,181-22,301-14,091-30,680-27,940-28,286-29,598-27,286-41,478-39,232
Cash from Financing Activity -4,011-4,5662,774-9,672-11,946-3511,9209,46419,144-24,910-15,203-24,470
Net Cash Flow203-6343,826-3,9141,905-2,7523,8351,2487,675-3,991-1,6641,623

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-46.00-44.00-49.00-50.00-67.00-72.00-81.00-100.00-112.00-117.00-112.00-155.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days333227202118261919131310
Inventory Days
Days Payable
Cash Conversion Cycle333227202118261919131310
Working Capital Days-95-98-105-172-139-150-200-189-257-172-154-155
ROCE %9%7%10%11%13%10%7%3%5%7%11%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters55.86%55.86%55.86%55.93%55.93%55.93%55.14%55.12%55.02%54.97%54.75%54.57%
FIIs18.57%18.12%19.87%19.37%19.36%18.54%21.87%21.70%20.97%21.48%21.87%22.69%
DIIs20.35%20.64%19.15%19.48%19.50%20.22%18.76%19.02%19.78%19.55%19.69%19.51%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.12%0.12%0.12%0.12%0.12%0.12%
Public5.16%5.32%5.08%5.16%5.16%5.26%4.06%4.00%4.05%3.82%3.53%3.07%
Others0.06%0.06%0.05%0.05%0.05%0.05%0.04%0.05%0.05%0.05%0.04%0.06%
No. of Shareholders7,13,8667,64,5526,81,9757,50,2417,67,5787,86,1697,79,9967,54,9617,58,7157,09,9526,85,5296,77,690

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Nifty 50 ETF45,732,6882.965137.38
SBI S&P BSE Sensex ETF32,253,1793.433621.71
SBI Equity Hybrid Fund31,000,0005.353482.39
ICICI Prudential Value Discovery Fund21,238,6495.872385.84
HDFC Flexi Cap Fund - Regular Plan18,000,0004.072022.03
ICICI Prudential Bluechip Fund17,348,7383.781948.87
ICICI Prudential Equity & Debt Fund14,595,3805.061639.57
Mirae Asset Large Cap Fund13,139,6643.921476.04
SBI Focused Equity Fund13,000,0004.751460.36
UTI Nifty 50 ETF12,746,6342.961431.89

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)14.807.67-27.65-63.410.96
Diluted EPS (Rs.)14.577.63-27.65-63.410.96
Cash EPS (Rs.)84.5569.7231.20-6.6556.73
Book Value[Excl.RevalReserv]/Share (Rs.)210.95164.46147.90187.20212.51
Book Value[Incl.RevalReserv]/Share (Rs.)210.95164.46147.90187.20212.51
Revenue From Operations / Share (Rs.)245.27208.49183.20160.46202.08
PBDIT / Share (Rs.)127.28103.8883.7870.4267.43
PBIT / Share (Rs.)63.0644.6830.2419.6614.02
PBT / Share (Rs.)27.8618.00-26.21-79.73-5.22
Net Profit / Share (Rs.)20.3310.52-22.34-57.403.33
NP After MI And SOA / Share (Rs.)14.717.61-27.46-58.991.02
PBDIT Margin (%)51.8949.8245.7343.8833.36
PBIT Margin (%)25.7121.4316.5012.256.93
PBT Margin (%)11.368.63-14.30-49.69-2.58
Net Profit Margin (%)8.295.04-12.19-35.771.64
NP After MI And SOA Margin (%)5.993.65-14.99-36.760.50
Return on Networth / Equity (%)9.196.39-25.58-41.710.57
Return on Capital Employeed (%)11.0110.007.084.673.07
Return On Assets (%)1.861.17-4.35-8.920.14
Long Term Debt / Equity (X)1.671.711.881.181.15
Total Debt / Equity (X)1.822.002.201.521.69
Asset Turnover Ratio (%)0.240.220.200.180.20
Current Ratio (X)0.470.450.490.580.35
Quick Ratio (X)0.460.450.480.580.35
Dividend Payout Ratio (NP) (%)20.340.00-8.230.00588.42
Dividend Payout Ratio (CP) (%)3.790.008.670.0011.07
Earning Retention Ratio (%)79.660.00108.230.00-488.42
Cash Earning Retention Ratio (%)96.210.0091.330.0088.93
Interest Coverage Ratio (X)3.743.493.052.752.54
Interest Coverage Ratio (Post Tax) (X)1.631.250.501.640.84
Enterprise Value (Cr.)605930.28567069.50422698.86367084.74259208.25
EV / Net Operating Revenue (X)4.354.874.204.193.21
EV / EBITDA (X)8.399.779.199.569.62
MarketCap / Net Operating Revenue (X)3.053.622.822.751.65
Retention Ratios (%)79.650.00108.230.00-488.42
Price / BV (X)4.686.344.823.121.86
Price / Net Operating Revenue (X)3.053.622.822.751.65
EarningsYield0.010.01-0.05-0.130.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹1,112.96

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Overvalued: 13.46% compared to the current price ₹1286

Intrinsic Value: ₹2,611.06

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 103.04% compared to the current price ₹1286

Last 5 Year EPS CAGR: 134.60%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -157.17, which is a positive sign.
  2. The company has shown consistent growth in sales (97.77 cr) and profit (3.46 cr) over the years.
  1. The stock has a low average ROCE of 8.75%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 20.92, which may not be favorable.
  3. The company has higher borrowings (127,987.38) compared to reserves (61,815.00), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Bharti Airtel Ltd:
    1. Net Profit Margin: 8.29%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 11.01% (Industry Average ROCE: 4.29%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ✓ ROE%: 9.19% (Industry Average ROE: 0.49%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.63
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.46
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 67.0 (Industry average Stock P/E: 33.1)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 1.82
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Bharti Airtel Ltd. is a Public Limited Listed company incorporated on 07/07/1995 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899HR1995PLC095967 and registration number is 070609. Currently Company is involved in the business activities of Wireless telecommunications activities. Company’s Total Operating Revenue is Rs. 70641.90 Cr. and Equity Capital is Rs. 2795.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Telecom ServicesAirtel Center, Plot No. 16, Gurugram Haryana 122015compliance.officer@bharti.in
http://www.airtel.com
Management
NamePosition Held
Mr. Sunil Bharti MittalChairman
Mr. Gopal VittalManaging Director & CEO
Mr. Rakesh Bharti MittalNon Executive Director
Ms. Chua Sock KoongNon Executive Director
Mr. Tao Yih Arthur LangNon Executive Director
Mr. Shyamal MukherjeeIndependent Director
Mr. Pradeep Kumar SinhaIndependent Director
Ms. Nisaba GodrejIndependent Director
Mr. V K ViswanathanIndependent Director
Ms. Kimsuka NarasimhanIndependent Director
Mr. Dinesh Kumar MittalIndependent Director

FAQ

What is the latest fair value of Bharti Airtel Ltd?

The latest fair value of Bharti Airtel Ltd is ₹1112.96.

What is the Market Cap of Bharti Airtel Ltd?

The Market Cap of Bharti Airtel Ltd is 7,64,510 Cr..

What is the current Stock Price of Bharti Airtel Ltd as on 19 May 2024?

The current stock price of Bharti Airtel Ltd as on 19 May 2024 is 1,286.

What is the High / Low of Bharti Airtel Ltd stocks in FY 2024?

In FY 2024, the High / Low of Bharti Airtel Ltd stocks is ₹1,364/784.

What is the Stock P/E of Bharti Airtel Ltd?

The Stock P/E of Bharti Airtel Ltd is 67.0.

What is the Book Value of Bharti Airtel Ltd?

The Book Value of Bharti Airtel Ltd is 138.

What is the Dividend Yield of Bharti Airtel Ltd?

The Dividend Yield of Bharti Airtel Ltd is 0.31 %.

What is the ROCE of Bharti Airtel Ltd?

The ROCE of Bharti Airtel Ltd is 12.3 %.

What is the ROE of Bharti Airtel Ltd?

The ROE of Bharti Airtel Ltd is 12.0 %.

What is the Face Value of Bharti Airtel Ltd?

The Face Value of Bharti Airtel Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Bharti Airtel Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE