ICICI Securities Sees Upside in 2 Telecom Stocks, Recommends Buy

ICICI Securities has recommended investors to buy 2 telecommunications stocks namely Bharti Airtel and Tata Communications. If you buy these 2 stocks now, you will get maximum 21% return. Bharti Airtel has a market capitalisation of Rs 4,49,144.69 crore while Tata Communications has a market capitalisation of Rs 37,934 crore. Check key details below:

1. Buy Bharti Airtel

The analyst has recommended investors to buy Bharti Airtel with a target price of Rs 970 apiece. The current market price of Bharti Airtel is Rs 805 apiece and if you buy the Bharti Airtel at the current market price of Rs 805, you are set to receive 21% return.

The company has a market capitalisation of Rs 4,49,144.69 crore. The stock's 52-week high is Rs 877 apiece and 52-week low is Rs 629 apiece. The stock has given 77% return in last 3-years, 49% return in last 5-years, and 15% in last 1-year.

According to ICICI Securities, "We expect Bharti's India revenues to grow 0.6% QoQ (17% YoY) to Rs247bn led by mobile segment (up 1.8% QoQ / 20% YoY). India EBITDA is likely to be up 2% QoQ (23.6% YoY) to Rs128bn; it will benefit from lower SUC partially offset by higher network cost due to 5G rollout. Bharti Africa's USD revenue and EBITDA may rise 1% QoQ each to US$1,321mn and US$642mn respectively."

2. Buy Tata Communications

ICICI Securities has given buy call to Tata Communications with a target price of Rs 1500 apiece. The current market price of Tata Communication is Rs 1327 apiece with a decline of 0.48%. If you decide to buy Tata Communications at current market price of Rs 1327 apiece, you will get 13% potential upside.

The company has a market capitalisation of Rs 37,934 crore. Tata Communications has delivered 216% return in last 3-years, 98% return in last 5-years and declined 11% in last 1-year. The mid-cap company operates in Telecommunications sector.

The company for the quarter ended September 30, 2022 declared a consolidated total income of Rs 4,467 crore, down 1.70% from last quarter total income of Rs 4544 crore.

According to the analyst, "Tata Communications is likely to report steady revenue growth in its data business on easing supply-chain issues and stable segmental margins."

Tata Communications enables the digital transformation of enterprises globally, including 300 of the Fortune 500 - unlocking opportunities for businesses by enabling borderless growth, boosting product innovation and customer experience, improving productivity and efficiency, building agility and managing risk, according to its official website.

Disclaimer

The stocks have been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.