Bharti Airtel Limited’s fundamental analysis highlights key financial metrics including market capitalization of ₹8,75,501 crore, PE ratio of 3.3, debt-to-equity ratio of 2.63, and return on equity of 14.9% These figures reflect the company’s financial health and current market valuation.
Content:
- Bharti Airtel Ltd Overview
- Bharti Airtel Financial Results
- Bharti Airtel Financial Analysis
- Bharti Airtel Company Metrics
- Bharti Airtel Stock Performance
- Bharti Airtel Peer Comparison
- Bharti Airtel Shareholding Pattern
- Bharti Airtel History
- How To Invest In Bharti Airtel Ltd Share?
- Bharti Airtel Limited Fundamental Analysis – FAQs
Bharti Airtel Ltd Overview
Bharti Airtel Ltd, a leading Indian telecommunications company, offers a range of services including mobile, broadband, and digital TV. It boasts a strong market presence, extensive network coverage, and continuous innovation in telecom technology and customer experience.
The company has a market capitalization of ₹8,75,501 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 4.87% below its 52-week high and 72.8% above its 52-week low.
Bharti Airtel Financial Results
Bharti Airtel’s financial results for FY24 show stable performance, with sales at ₹1,49,982 crores, up from ₹1,16,547 crores in FY22. Net profit slightly increased to ₹8,558 crores from ₹8,305 crores.
- Revenue Trend: Bharti Airtel’s sales increased to ₹1,49,982 crores in FY24 from ₹1,39,145 crores in FY23, reflecting continued growth in revenue.
- Equity and Liabilities: The company’s equity and liabilities structure showcases financial stability and strategic management. It effectively balances equity financing and debt to ensure sustainability and capital flexibility for growth initiatives.
- Profitability: Operating profit margin (OPM) slightly improved to 52% in FY24 from 51% in FY23, showcasing strong operational efficiency.
- Earnings Per Share (EPS): Bharti Airtel’s EPS decreased to ₹13.09 in FY24 from ₹14.8 in FY23, reflecting challenges in maintaining profitability.
- Return on Net Worth (RoNW): Despite a decrease in net profit, Bharti Airtel maintained a relatively stable return on net worth, supported by its operational strength.
- Financial Position: The company’s financial position is marked by high EBITDA, though offset by increased interest and depreciation expenses, challenging overall profitability.
Bharti Airtel Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 1,49,982 | 1,39,145 | 1,16,547 |
| Expenses | 71,691 | 67,871 | 59,013 |
| Operating Profit | 78,292 | 71,274 | 57,534 |
| OPM % | 52 | 51 | 49 |
| Other Income | -6,137 | 266.8 | 2,233 |
| EBITDA | 79,727 | 72,210 | 58,068 |
| Interest | 22,648 | 19,300 | 16,616 |
| Depreciation | 39,538 | 36,432 | 33,091 |
| Profit Before Tax | 9,970 | 15,809 | 10,060 |
| Tax % | 41.34 | 27.03 | 41.53 |
| Net Profit | 8,558 | 12,287 | 8,305 |
| EPS | 13.09 | 14.8 | 7.67 |
| Dividend Payout % | 61.12 | 27.03 | 39.11 |
*All values in ₹ Crores
Bharti Airtel Company Metrics
Bharti Airtel Ltd is a leading telecommunications company with a significant market presence and robust financial metrics. With substantial revenue generation and profitability, the company demonstrates strong performance across various key financial indicators, reflecting its market strength and operational efficiency.
- Market Cap: Bharti Airtel boasts a market capitalization of ₹8,75,501 crore, underscoring its substantial size and influence in the telecom sector.
- Book Value: The book value of Bharti Airtel stands at ₹145, indicating the per-share value based on the company’s total assets minus liabilities.
- Face Value: The face value of Bharti Airtel’s stock is ₹5.00, representing the nominal value assigned to each share.
- Turnover: Bharti Airtel’s asset turnover ratio is 0.34, reflecting the efficiency with which the company utilizes its assets to generate revenue.
- PE Ratio: The price-to-earnings (P/E) ratio of 73.3 suggests that Bharti Airtel’s stock is currently valued at a premium relative to its earnings. This high ratio often reflects investor expectations of future growth.
- Debt: With a debt of ₹2,15,592 crore, Bharti Airtel’s leverage indicates its reliance on borrowed funds. The substantial debt level highlights the company’s investment in growth and expansion but also points to financial risk.
- ROE: Bharti Airtel’s return on equity (ROE) stands at 14.9%, demonstrating the company’s effectiveness in generating profit from shareholders’ equity.
- EBITDA Margin: The EBITDA margin is 13.0%, showcasing Bharti Airtel’s profitability before interest, taxes, depreciation, and amortization.
- Dividend Yield: Bharti Airtel’s dividend yield is 0.55%, indicating the annual dividend income as a percentage of the stock price. While relatively modest, it represents the company’s commitment to returning value to shareholders.
Bharti Airtel Stock Performance
The table indicates robust returns on investment over different periods. Over five years, the return is 32%, reflecting steady growth. In three years, it rose to 34%, showing improved performance. The one-year return of 68% highlights significant short-term gains and strong recent performance.
| Period | Return on Investment (%) |
| 5 Years | 32% |
| 3 Years | 34% |
| 1 Year | 68% |
Example:
If A invested ₹1,00,000 five years ago, the return would be ₹32,000, totaling ₹1,32,000.
In three years, with the same investment, A would have seen a return of ₹34,000, amounting to ₹1,34,000.
Over the past year, A’s investment would have grown by ₹68,000, reaching ₹1,68,000.
Bharti Airtel Peer Comparison
Bharti Airtel, with a market cap of ₹880,220.46 crore, shows a PEG ratio of 0.6 and a solid 1-year return of 69.74%. Its 3-month return of 9.41% indicates consistent growth, outperforming many rivals in the telecom sector like Vodafone Idea, Tata Comm, Bharti Hexagon, etc.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3 mth return % | 1Yr return % |
| 1 | Bharti Airtel | 1471.7 | 880220.46 | 0.6 | 9.41 | 69.74 |
| 2 | Vodafone Idea | 15.79 | 107111.52 | 20.08 | 96.15 | |
| 3 | Bharti Hexacom | 1127.5 | 57015.14 | 3.94 | 19.74 | |
| 4 | Tata Comm | 1833.35 | 52339.63 | 0.88 | 1.55 | 7.49 |
| 5 | Tata Tele. Mah. | 88.55 | 17303.24 | 15.22 | 15.15 | |
| 6 | Railtel Corpn. | 464.5 | 14913.89 | 3.78 | 15.63 | 179.06 |
| 7 | Nazara Technologies. | 921.6 | 7054.83 | 1.38 | 49.19 | 39.19 |
Bharti Airtel Shareholding Pattern
In June 2024, promoter shareholding decreased to 53.17%, while FII ownership increased to 24.62%. DII holdings remained stable at 19.29%, and retail & others dropped to 2.91%. This shift indicates growing institutional interest and reduced retail participation.
| Jun 2024 | Mar 2024 | Dec 2023 | Sept 2023 | |
| Promoters | 53.17 | 53.49 | 54.57 | 54.75 |
| FII | 24.62 | 24.35 | 22.69 | 21.87 |
| DII | 19.29 | 19.36 | 19.66 | 19.84 |
| Retail & others | 2.91 | 2.81 | 3.1 | 3.54 |
*All values in %
Bharti Airtel History
Founded in 1995 as Bharti Cellular Limited, Bharti Airtel revolutionized Indian mobile communication by launching services in Delhi. By 2000, it expanded its footprint with the acquisition of Skycell Communications and became a pioneer in the Indian telecom sector.
In 2002, Airtel became the first Indian operator to surpass 2 million mobile subscribers, further enhancing its offerings with broadband and telephone services in 2005. The company introduced 3G in 2010, followed by 4G services in 2012, transforming internet accessibility.
Airtel continued to innovate with the launch of Payments Bank in 2016 and tested 5G in 2021. In 2022, it expanded its portfolio with satellite broadband and green energy initiatives, reflecting its commitment to technological advancement and sustainability.
How To Invest In Bharti Airtel Ltd Share?
Investing in Bharti Airtel Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Bharti Airtel Ltd shares and place your buy order.
Bharti Airtel Limited Fundamental Analysis – FAQs
Bharti Airtel Limited’s fundamental analysis shows a market capitalization of ₹8,75,501 crore, a PE ratio of 3.3, a debt-to-equity ratio of 2.63, and a return on equity of 14.9%, indicating its financial stability and market value.
The market cap of Bharti Airtel Limited as of August 12, 2024, is approximately ₹8,75,501 crore. This value reflects the company’s strong market position in the Indian telecom industry.
Bharti Airtel Limited is a major Indian telecommunications company offering mobile, broadband, and digital television services. It operates globally and is known for its extensive network coverage, diverse service portfolio, and significant presence in the telecom industry.
Bharti Airtel is owned by Bharti Enterprises, founded by Sunil Bharti Mittal. Sunil Bharti Mittal, as the key figure behind Bharti Enterprises, plays a significant role in the company’s leadership and strategic direction.
The main shareholders of Bharti Airtel include Bharti Enterprises, which holds a significant stake, and international investors such as The Vanguard Group and BlackRock. Prominent institutional investors and mutual funds also hold substantial shares in the company.
Bharti Airtel operates in the telecommunications industry. It provides mobile, fixed-line, and broadband services, along with digital television and enterprise solutions. The company is a major player in both the Indian and international telecom markets.
To invest in Bharti Airtel Limited shares, open a brokerage account, complete KYC requirements, and place a buy order for the shares through your brokerage platform. Ensure to review market conditions and the company’s financial health before investing
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
