Analysts at Jefferies believe that Bharti Airtel is the best way to play rising mobile tariffs in India and remains the brokerage's top stock pick in the sector. The brokerage has Buy rating on Bharti Airtel shares with a SOTP-based price target of ₹880 apiece, implying a potential upside of about 28% from current stock level. Though, key risks as per Jefferies are delays in tariff hikes, Vodafone Idea's (Vi) fundraising and potential overspending on spectrum. Tariff hikes drove a 8-11% QoQ average revenue per user (ARPU) uptick, while pickup in gross adds indicates acceptance of tariff hikes. Jefferies expects Arpus to further benefit from residual impact of the 20% tariff hikes in subsequent quarters.

Source: Mint June 04, 2022 04:04 UTC