New Street: Indian Mobile If Jio IPO's at $100bn what is Bharti worth?
Speculation that Jio might IPO at around $100bn in 2022 makes us brush off our read across valuation for Bharti. Bharti has been consistently outperforming Jio. The reported Indian Mobile EBITDA gap between the two operators is now down to 24%, having been over 100% at one point. We expect the gap to narrow further which suggests it is reasonable to value Bharti on a similar multiple to Jio, implying a valuation of Bharti’s Indian Mobile business of $80bn; and a price target of INR 1,200. This brief note runs through this maths.Bharti Airtel provides telecommunication systems and services to individuals and businesses in India with operations in 20 countries across Asia and Africa. In India, Co.'s product offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed line services, high speed DSL broadband, IPTV, DTH, enterprise services including national & international long distance services to carriers. In the rest of the geographies, it offers 2G, 3G wireless services and mobile commerce. Co. had nearly 287 million customers across its operations at the end of Dec 2013.
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