Airtel Stock analysis in 9 minutes

fundamental analysis Jan 16, 2021

Stock analysis: Bharti Airtel

This article is about Bharti Airtel.
Airtel is a global telecommunications company with operations in 18 countries across South Asia and Africa. Airtel's portfolio includes high speed 4G and 4.5G mobile broadband, Airtel Xstream Fiber that promises speeds upto 1Gbps, converged digital TV solutions through the Airtel Xstream 4K Hybrid Box, digital payments through Airtel Payments Bank as well as an integrated suite of services across connectivity, collaboration, cloud and security that serves over one million businesses.

Market capitalization and stock price history

Bharti Airtel has a market capitalization of 3.288 trillion, at the time of making this video.
Its stock price made an all time high of rupees 602 on 15 January 2021.
market cap and stock price
In past five years, the stock price made a low of rupees 262 on 11 October 2018.
stock price variation

Stock returns

This stock gave compounded annual growth of 28 percentage over past one year, 9 percentage over past three years, and 16 percentage over past five years.
stock returns

Revenue and profits

In past 12 months, Bharti Airtel had a revenue of rupees 953.9 billion, and a gross profit of rupees 541.1 billion.
As compared to previous fiscal year, in the past 12 months, it has seen a revenue growth of 9.0%.
On 31/3/2020, Bharti Airtel reported a total revenue of rupees 875.4 billion, and has seen a revenue growth of 8.4% from the previous year.
The company reported an EBITDA of rupees -72.1 billion.
revenue

Fundamental analysis

Now let us look at some key financial ratios to guage how good or bad this stock is.
Its "beta" value, which is a measure of volatility of stock, is 0.63.
This means the stock moves with less volatility than the market. High-beta stocks are supposed to be riskier but provide higher return potential; low-beta stocks pose less risk but also lower returns.
The price to earnings ratio information is not available for this stock.
The price to earnings ratio indicates whether the stock is undervalued or overvalued.
Based on the last twelve months, the earnings per share value is -42.86.
fundamental analysis
Now, we will compare some key financial ratios with the top 1000 NSE stocks.
For this purpose, we divide the distribution of these key indicators in to four parts or "quartiles".
Quartile region is obtained by dividing all the stocks in 4 buckets, so that each bucket contain same number of stocks.
As compared to top 1000 stocks in NSE, Bharti Airtel has its beta value in the first quartile.
This means the stock exhibits very low volatility.
beta
Bharti Airtel has earnings per share of -42.86, which is higher than 2% of top 1000 NSE stocks.
The earnings per share value is bad.
Earnings per share is a company's net profit divided by the number of outstanding shares. This is a wildly used metric to estimate corporate value.
EPS
market cap and stock price
The price to earnings ratio information is not available for this stock.
Price to earnings ratio measures its current share price relative to its per-share earnings.
price to earnings
comparison1
Bharti Airtel has price to book value ratio of 5.31, which is higher than 76% of top 1000 NSE stocks.
The price to book value ratio is in the fourth quartile, this means the stock may be hyped.
The price-to-book ratio compares a company's market value to its book value. Book value is net assets of the company.
This ratio should be looked at in conjunction with return on equity ratio. A low return on equity combined with high price to book ratio means stock is overvalued.
price to book ratio
comparison 2
Bharti Airtel has return on equity value of -24.13%, which is higher than 4% of top 1000 NSE stocks.
The return on equity for this stock is in the first quartile, which is bad.
The return on equity is calculated by taking company's net earnings after taxes, subtracting preferred dividends, and dividing by the total equity.
return on equity
comparison 3
Bharti Airtel has debt to equity ratio of 189.41, which is higher than 78% of top 1000 NSE stocks.
The debt to equity ratio for this stock is in the fourth quartile, which is bad.
A debt to equity ratio is company's total liabilities divided by shareholder's equity, and lower value of this ratio is preferred.
This ratio is a measure of the degree to which a company is financing its operations through debt versus wholly-owned funds.
A higher value of this ratio tend to indicate higher risk to the investors.
debt to equity
comparison 4
Bharti Airtel has operating cash flow of 246.5 billion in the past 12 months, which is higher than 92% of top 1000 NSE stocks.
The operating cash flow for this stock is in the fourth quartile, which is very good.
operating cash flow
comparison 5
Bharti Airtel has levered free cash flow of -132.0 billion in the past 12 months, which is higher than 0% of top 1000 NSE stocks.
The levered free cash flow for this stock is in the first quartile, which is bad.
levered free cash flow
comparison 6
Bharti Airtel has no dividend payout recently.
The dividend payout ratio provides an indication of how much money a company is returning to shareholders versus how much it is keeping on hand to reinvest in growth, pay off debt, or add to cash reserves.
payout ratio
comparison 3

Income Statement

EBITDA
The company reported an EBITDA of rupees -72.1 billion in year 2020, which is 125% less than the EBITDA from the previous year.
The company showcased earnings per share of -63.4 in year 2020, which is 6846% less than the EPS from the previous year.
EPS growth

Balance sheet

Bharti Airtel has shown year on year increase in stockholder's equity by 8.0% in year 2020.
This stock showed year on year increase in stockholder's equity by 2.7% in year 2019.
This stock showed year on year increase in stockholder's equity by 3.1% in year 2018.
stockholder equity

Cash flow

Bharti Airtel has free cash flow of rupees 24.3 billion in the past twelve months.
The free cash flow for the year 2020 was rupees -25.9 billion.
Cash flow

Comparison with NIFTY50

Here you can see statistics related to number of shares.
56.35% of shares are help by insiders
28.60% of shares are help by institutions
fundamental analysis
Bharti Airtel is at position 9 in terms of market capitalization among the nifty 50 stocks.
market cap and stock price
Bharti Airtel is at position 12 in terms of annual revenue among the nifty 50 stocks.
market cap and stock price
Bharti Airtel is at position 37 in terms of free cash flow among the nifty 50 stocks.
market cap and stock price
Here, we presented a very simplified assessment of fundamental indicators. We categorized the performance on each indicator by comparing it with top 1000 NSE stocks.
On your side, go thoroughly through the financial data before deciding on investing in this stock.
market cap and stock price

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