Bharti Airtel share cost rose more than 5% on Wednesday whilst all round marketplace sentiment was damaging and bears have been wreaking havoc. The telecom giant’s stock was trading at Rs 567 per share. “Bharti Airtel is getting positive momentum in stock due to the increase in tariff rates for the postpaid subscriber,” Amarjeet S Maurya, A.V.P. Research, Angel Broking stated. Earlier in the day, Airtel announced that it will be discontinuing its Rs 49 entry-level prepaid recharge strategy. Bharti Airtel share cost has jumped 7.75% in the last one week of trade.
ARPU enhance on cards?
The business had also announced new plans for postpaid corporate and retail prospects last week as the telecom business continues to inch closer towards a different tariff hike. “Airtel has recently upgraded its postpaid and prepaid plans. With this the market is anticipating an increase in Average Revenue Per User (ARPU) of Bharti Airtel going forward,” Vishal Wagh, Head of Research, Bonanza Portfolio told TheSpuzz Online. Vishal Wagh added that Bharti Airtel has also been gaining momentum when it comes to active wireless subscribers. As per TRAI information, as of April, Bharti Airtel had 346.95 million active wireless subscribers, followed by Reliance Jio’s 335.17 million customers. Vishal Wagh stated that this is assisting investors achieve self-assurance in Bharti Airtel.
Although the precise influence of the adjustments made by Bharti Airtel so far is unknown, analysts count on wholesome development. “The company is increasing tariffs rate for the enterprise segment (which account for around 60% of the company’s postpaid users) which would boost overall average ARPU for Bharti Airtel. Going forward, we expect Airtel to report healthy top-line & Bottom-line growth on the back of a strong brand, growth in customer additions, and improvement in ARPU. Hence, we are positive on the stock,” Amarjeet S Maurya added.
Charts recommend additional upside
On the technical side, analysts at ICICI Direct have a ‘buy’ get in touch with on Bharti Airtel. “We believe the stock has undergone healthy consolidation setting the stage to resolve higher towards Rs 595 levels in coming months as it is the 80% retracement of February-March 2021 decline (Rs 623-500),” they stated in a note earlier. “The stock has formed a higher base above 52 weeks EMA and currently resolving out of past two months range (550-520) coincided with five months falling trend line, indicating resumption of the primary uptrend that augurs well for next leg of the up move,” ICICI Direct added. The brokerage firm has a quit-loss of Rs 510 on Bharti Airtel and recommends this trade with a 3-month time frame.