Last updated: 30 Jul, 2020 | 09:33 am
The telecom sector has been benefited by the Covid-19 crisis given the surge in demand for telecom services as a result of digitization of workplaces and business.
Bharti is expected to benefit the most from the revival in industry revenues due to a strong spectrum footprint, robust balance sheet, and strong execution.
For the June quarter, Airtel has performed well in operational terms and is expected to continue to do so in the near future.
The most sticky point for the company remains on the payment of AGR dues. The decision on the request by Airtel and Vodafone to the Supreme court on the restructuring of dues to be paid over the period of 15-20 years is pending. A positive decision here would be a tremendous boost for its growth prospects.
Our proprietary VGQM model has a HOLD rating on the stock.