India’s telecom sector is back in focus after the Bombay High Court struck down the government’s contentious one-time spectrum charge (OTSC), removing a long-standing regulatory overhang and improving the outlook for operators. Brokerage firm Elara Capital has initiated coverage on Bharti Airtel, Bharti Hexacom and Indus Towers, citing a multi-year recovery cycle driven by rising average revenue per user (ARPU), strong data demand and easing capital expenditure. The firm sees meaningful upside in key players, backed by improving free cash flows and a structural shift in the industry towards sustained growth.
Elara Capital on India Telecom SectorInitiating coverage on Telecom SectorInitiate BUY on Bharti Airtel with target price Rs 2,387 Initiate BUY on Bharti Hexacom with target price Rs 1,756 Initiate ACCUMULATE on Indus Towers with target price Rs 491India telecom sector in multi-year recovery driven by average revenue per user improvement, structural data demand and moderating capital expenditureFree cashflow for operators expected to grow in double digits as sector transitions from consolidation to compounding phase
One-Time Spectrum Charge Axed
How much money was involved
Why did the Court rule against the Government
Why is this important for Vodafone Idea
For Airtel, this is a positive but not transformational event.
For Vodafone Idea, it is much more significant because:
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
