Bharti Airtel’s market cap nears ₹10 lakh crore, adds ₹3.7 lakh crore in 2024

Bharti Airtel, a major player in India’s telecommunications industry, has consistently shown strong performance in the share market. Its stock has seen impressive gains, offering significant returns to investors and reflecting increased confidence in the company’s business prospects. 

Bharti Airtel reaches new heights in 2024

Bharti Airtel’s stock has hit a series of lifetime highs, crossing key milestones and delivering exceptional returns to investors. As of 2024, the stock reached an all-time high of ₹1,675 per share, representing a 62% gain for the year. This upward trend has boosted the company's market capitalisation to ₹9.7 lakh crore, positioning it just shy of the elite ₹10 lakh crore club, which only a few companies in India have achieved.

In the last nine months alone, Airtel has added ₹3.66 lakh crore to its market value, maintaining a steady growth trajectory. 

Driving factors behind Airtel’s stock growth

Several key factors have fueled Bharti Airtel’s share market investment journey:

1. Expansion in 5G and digital infrastructure: The company’s focus on next-generation technology and strategic investments have placed it in a leading position in the telecom sector.
2. Strong performance in B2B and partnerships: Airtel Business recently secured additional capacity on the Blue-Raman submarine cable system through a partnership with Italy’s Sparkle, boosting its global network capabilities.
3. Robust customer base and industry-leading ARPU: With over 350 million mobile customers and 250 million data users, Airtel continues to attract more subscribers, particularly from rural areas. Its average revenue per user (ARPU) reached ₹211 in the current financial year, leading the telecom industry.
4. Global expansion in Africa: Airtel Africa saw its mobile and mobile money user bases grow significantly, contributing to the overall business’s profitability.

Airtel’s long-term success story

The telecom giant has shown positive stock performance for six consecutive years, with notable returns of 59% in 2019, 12% in 2020, 18% in 2021, and 267% cumulative gains over the past five years. In 2024 alone, Bharti Airtel continued to make substantial gains, including 6% growth this month.

With continuous improvements in technology, a strong business model, and strategic partnerships, Airtel is well-positioned for long-term growth. Its commitment to providing bundled plans with ample data has led to a 21.8% increase in total data usage, making it a dominant player in India’s telecom industry.

Analysts optimistic about Airtel’s future

Domestic and global brokerage firms remain optimistic about Airtel’s future in the share market investment landscape. Jefferies and Goldman Sachs, two leading global brokerage firms, have both issued strong buy recommendations. Jefferies raised its target price from ₹1,760 to ₹1,970, forecasting a 19% EBITDA CAGR between FY24 and FY27. Similarly, Goldman Sachs increased its target price from ₹900 to ₹1,700, citing strong cash flow improvements and growth in free cash flow.

Analysts anticipate further stock performance boosts, driven by potential tariff hikes, the 2G to 4G upgrade cycle, and continued expansion in the enterprise and fibre-to-the-home (FTTH) segments.

Key takeaways

• Bharti Airtel’s stock has surged by 62% in 2024, reaching a high of ₹1,675.
• The company is nearing a market capitalisation of ₹10 lakh crore, reflecting its dominant position in India’s telecom industry.
• Analysts project continued growth due to strategic investments in 5G, partnerships, and a growing customer base.
• Jefferies and Goldman Sachs have both raised their target prices for the stock, signalling a positive outlook for future performance.