Bharti Airtel stock can rally up to 20%: Rahul Shah

Rahul Shah of Motilal Oswal Financial Services says that there could be an upside potential of up to 20 per cent in Bharti Airtel. Edited excerpts from an interview:

How do you think this week is going to be for the stock market as the big event of Budget is now behind us?
Despite inflationary pressures, Nifty companies have been mostly reporting better earnings. There have been more upgrades or in-line ratings than downgrades. Except for consumer companies, I do not think there has been any disappointment in terms of earnings. IT companies gave robust performance. PSU banks, private banks and the entire universe of NBFC and financials have given blockbuster performance. Metals have also reported very good numbers so far.

In the Budget, there was no bad news. The good news was the thrust on reviving capex and driving expenditure. That again will drive the overall growth in the economy. The overall market looks quite strong in the broader perspective. There would be a sectoral change. People will move their portfolios from one sector to another. By and large, it looks like the market will continue to do well in the near term.

What are your expectations from Bharti Airtel?
Overall, both Airtel and Jio look very convincing. After Google’s deal with Airtel, I think this stock will remain in focus. The management has guided for increase in ARPU. The rate hikes which happened in the last quarter augur well for all telecom companies. The biggest beneficiary will be Airtel and Jio. So my sense is that the company should continue to do well and we believe there would be another 20% upside from the current prices in Bharti Airtel.