Airtel, CLSA on Tata Communication excited – CLSA Excted on Airtel Tata Communication

CLSA is seeing long -term opportunities in the data business of Bharti Airtel and Tata Communications. He has re -confirmed his ‘outperform’ rating on both these shares due to special focus on growth and capital expenditure (capex). In the report titled ‘Tail of to Enterprise Business’, CLSA has said that the enterprise data businesses of Bharti Airtel and Tata Communications are growing rapidly and are in profit. Brokerage has set a price of Rs 1,890 for Bharti Airtel and Rs 2,070 per share for Tata Communications, indicating 9.6 percent and 29.8 percent respectively.

Brokerage said in its March 26 report that Bharti Airtel’s large non-mobile business is an enterprise data service. Its portfolio includes global and domestic segments as well as data centers. The data center business is steadily growing and with the increase in connectivity services in the domestic segment, there is a ‘strong’ boom in digital. Bharti’s Airtel business is focusing on digital services such as Cloud, Safety, Internet on Things and Communication platforms, which is 90 percent of the industry growth.

The CLSA said that Bharti Airtel is ahead of its opponent in terms of revenue and size. In the first nine months of FY 2025, Airtel Business’s Ebita stood at Rs 6,100 crore as compared to the previous year, while Tata Communications Ebita fell 3 percent to Rs 2,800 crore compared to the previous year. Bharti is ahead of Tata Communications in terms of revenue and size.

The Chief Executive of Tata Communications has targeted to double data revenue, which will help in 13 percent CAGR of CLSA. Bharti’s contribution to the total growth of the industry has reached around 90 percent of Bharti’s cloud, security and others. He said, “We are looking at the enterprise data business as an opportunity for long -term growth.”

Global opportunity

The Central Institutional Research has said in its latest report that there is less scope for customer access in developed markets. This is a sign of limited scope for mature network and further domestic expansion. However, the level of reach in emerging markets like India and Argentina is increasing. This shows that these areas have great potential for expanding digital infrastructure.

Shares trick
Bharti Airtel’s stock has performed better than the Nifty-50, with a gain of about 8.63 per cent so far this year. The stock has improved 10.6 per cent from a low of Rs 1,559 in February this year.

At the same time, the stock of Tata Communications has fallen by 6.39 per cent this year, while the Nifty 50 index has declined by 0.22 per cent.

First Published – March 27, 2025 | 10:41 pm IST

Related post