Vodafone Idea, Bharti Airtel, Indus Towers, Bharti Hexacom shares get target price revisions from JPMorgan; what’s next?
JPMorgan in its latest note on telecom sector upped target prices for Vodafone Idea Ltd (VIL), Bharti Airtel Ltd, Indus Towers Ltd and Bharti Hexacom Ltd. The foreign brokerage said the unfavorable AGR ruling by the Supreme Court last month necessitates annual tariff hikes for VIL to be able to pay the spectrum dues, adding that India’s data yield (dollar per GB) and average revenue per user (ARPU) as per cent of GDP per capita remains one of the lowest in the region nine years since Jio’s launch.
This affordability of service and a benign regulatory environment gives telecom operators the headroom to take successive tariff hikes, before reaching the average trend of Asian peers, the brokerage said.
“We think this could…
