With a market capitalization of ₹10 lakh crore, Bharti Airtel becomes the 4th Indian company to achieve this milestone

Bharti Airtel shares surged to a new peak, reaching ₹1,711.70 on Thursday, September 19, marking a significant achievement as the company became the fourth in India to cross the ₹10 lakh crore market capitalization milestone. The combined value of its fully and partly paid-up shares pushed it past this threshold, with the company adding ₹1 lakh crore to its valuation in just 18 trading sessions.

At the start of the year, Bharti Airtel held the 7th spot in terms of market capitalization but has since leapfrogged prominent names like Hindustan Unilever, Infosys, and ICICI Bank. On Thursday, its stock jumped more than 3%, contributing to a year-to-date gain of 62%. In comparison, the Nifty index has seen a more modest 17% rise during the same period.

According to analysts at Jefferies, Bharti Airtel has identified promising opportunities within the mid-to-premium segments of both its B2C and B2B markets and outlined a clear strategy for growth in these areas. The global brokerage firm, which maintains a “Buy” rating on the stock with a target price of ₹1,970, anticipates improved cash flow driven by robust growth and a reduction in capital expenditures. Jefferies also noted the company’s focus on achieving ₹300 average revenue per user (ARPU) in its mobile segment and growing its presence in non-mobile services as immediate objectives.

Currently leading the market capitalization rankings in India is Reliance Industries Ltd, valued at close to ₹20 lakh crore. Tata Consultancy Services (TCS), a software behemoth, follows with a market cap of ₹15.6 lakh crore, while HDFC Bank, the country’s largest private lender, ranks third at ₹13 lakh crore.

In the fiscal year 2024, Bharti Airtel hit notable milestones, including reaching 350 million total customers and 250 million data users. The company also generated an operating free cash flow of ₹39,564 crore for the year. By the end of March 2024, its consolidated net debt, excluding lease obligations, stood at ₹1.4 lakh crore, a slight reduction from ₹1.5 lakh crore the previous year.

Additionally, Bharti Airtel’s dividend payout saw a significant increase in FY24. Fully paid-up shareholders received ₹8 per share, while those holding partly paid-up equity shares were given ₹2 per share, with each share carrying a face value of ₹5.