Telecom Giant’s Milestone Driven by Positive Market Sentiment and Robust Performance
Bengaluru, NFAPost: Bharti Airtel, a prominent player in India’s telecommunications sector, marked a historic achievement by becoming the eighth company to surpass the Rs.6 lakh crore market capitalization milestone on December 4. The telecom giant’s stocks witnessed a 2% surge during Monday’s trade, contributing to an impressive year-to-date gain of 28%. This significant leap was attributed to the positive market sentiment following the Bharatiya Janata Party’s decisive victory in state elections.
Market Overview and Positive Momentum
Bharti Airtel’s buoyant market performance mirrors the overall positive sentiment in the stock market. The telecom company’s shares added another 2% on Monday, bolstering its year-to-date gain to a commendable 28%. In contrast, the benchmark Nifty recorded a 14.3% gain during the same period. Bharti Airtel has consistently delivered positive returns over the past five years, with notable surges of close to 60% in 2019, followed by gains of 12% and 37% in 2020 and 2021, respectively.
Top Gainers in the Share Market
Standing out among the top gainers in the share market, Bharti Airtel showcased its robust performance. Other notable gainers contributing to the positive market sentiment include Adani Enterprises, Adani Ports, BPCL, M&M, and SBI.
Market Cap Milestones
Bharti Airtel now joins the elite league of Indian corporate giants with a market capitalization exceeding Rs.6 lakh crore. This exclusive club includes names like Reliance Industries, TCS, HDFC Bank, ICICI Bank, HUL, Infosys, and ITC. However, it’s noteworthy that ITC recently experienced an 8% decline, causing its valuation to fall below the significant Rs.6 lakh crore mark.
Bharti Airtel’s Steady Growth and Year-to-Year Gains
Bharti Airtel’s consistent positive performance over the years highlights its upward trajectory, outperforming the benchmark Nifty and generating positive returns for five consecutive years. A comparison with other major companies that have crossed the Rs.6 lakh crore market capitalization milestone underscores Bharti Airtel’s remarkable achievement.
Financial Performance and Outlook
Despite Bharti Airtel’s second-quarter net profit falling below street estimates due to a one-time charge, the company’s operating margin expanded. Factors contributing to this positive operative margin include subscriber additions, higher postpaid/4G subscribers, and improved performance in the Africa business. Jefferies’ analysis, included in the article, predicts a positive outlook for the company and emphasizes its potential for strong stock returns.
Financial Year 2023 Highlights
The financial year 2023 saw Bharti Airtel strategically capitalize on its resilience and initiatives, including a rights issue that involved the allotment of 39.23 crore shares at an issue price of Rs.535 per piece. Additionally, the company distributed dividends of Rs.4 for fully paid-up equity shares and Rs.1 for partly paid-up equity shares, each carrying a face value of Rs.5. This reflects the company’s commitment to strategic growth and shareholder value.
