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Bharti Airtel joins the $100 billion Indian market cap club

Bharti Airtel has become the fourth Indian firm to have crossed the ₹10,000 crore (100 bn) market capitalization. The other three with a market cap of over $100 billion, are Reliance Industries, Tata Consultancy Services (TCS), and HDFC Bank.

According to brokerage firm CLSA, the telco’s entry to the $100 billion club is led by the success of its mobile business. It has benefitted the most from tariff hikes. Between FY20 and FY24, Bharti Airtel experienced a 54 percent increase in average revenue per user (ARPU), versus Reliance Jio and Vodafone Idea, which saw a 39 percent and 37 percent increase in ARPU, respectively.

The brokerage expressed a positive outlook for the telco as well, “Bharti’s three key drivers are its high-growth scalable business, strong management and global competitive edge. Leaving aside aberrations, such as investors willing to look beyond Africa currency woes, should reap Bharti’s India growth upside.”

CLSA added, “Management will continue to play a key role in steering strong growth, capitalizing on new opportunities in cloud, data centers and enterprise services, 5G fixed wireless access (FWA) homes, and generating superior returns.”

CT Bureau

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