Bharti Airtel Becomes the 8th Company to Surpass ₹6 Lakh Crore Mcap

Bharti Airtel, one of India’s leading telecommunications companies, achieved a significant milestone by becoming the 8^th company to surpass Rs.6 lakh crore on December 4. This surge was attributed to the positive market sentiment following the Bharatiya Janata Party’s resounding victory in state elections. The company’s stock witnessed a 2% increase during Monday’s trade, contributing to a year-to-date gain of 28%.

Market Overview

The buoyant market sentiment reflected in the overall stock market, with Bhart Airtel’s shares gaining an additional 2% on Monday, bringing its year-to-date gain to an impressive 28%. In contrast, the benchmark Nifty recorded a 14.3% gain during the same period. The company has consistently delivered positive returns for the past five years, with 2019 marking the highest surge at close to 60%. The upward trend continued with gains of 12% and 37% in 2020 and 2021, respectively.

Top Gainers in Share Market

Among the top gainers in the share market, Bharti Airtel stands out, showcasing its robust performance. The company’s shares added 2% on Monday, contributing to its impressive year-to-date gain. Other notable gainers include Adani Enterprises, Adani Ports, BPCL, M&M and SBI.

Company	Value	Change	%Change
Adani Enterprises	Rs.2,800.90	Rs.269.70	10.66%
Adani Ports	Rs.964.35	Rs.85.70	9.75%
BPCL	Rs.472.15	Rs.10.65	2.31%
M&M	Rs.1,693.85	Rs.37.00	2.33%
SBI	Rs.607.55	Rs.12.85	2.16%

Market Cap Milestones

Bharti Airtel joins the league of other Indian giants, including Reliance Industries, TCS, HDFC Bank, ICICI Bank, HUL, Infosys and ITC, with a market capitalization exceeding Rs.6 lakh crore. However, ITC recently witnessed an 8% decline, causing its valuation to drop below this significant mark.

Company	Mcap (Rs. Lakh crore)
RIL	16.38
TCS	12.85
HDFC Bank	12.21
ICICI Bank	6.95
HUL	6.11
INFOSYS	6.08
BHARTI AIRTEL	6.06

Bharti Airtel’s Steady Growth

Bharti Airtel’s consistent positive performance over the years, showcasing its year-to-year gains. The stock has been on an upward trajectory, outperforming the benchmark Nifty and has generated positive returns for the past five years. A comparison is drawn between Bharti Airtel’s performance and that of other major companies that have surpassed the Rs.6 lakh crore market capitalization milestone.

Financial Performance

Despite Bharti Airtel’s net profit coming is below street estimates in the second quarter of FY24 due to a one-time charge, the company’s operating margin expanded. The article explores the reasons behind the positive operative margin, citing factors such as subscriber addition, higher postpaid/4G subscribers and improved performance in the Africa business, Jefferies’ analysis is included, which predicts a positive outlook for the company and emphasizes the potential for stock returns.

Financial Year 2023 Highlights

During the financial year 2023, Bharti Airtel undertook strategic capitalization reflects its resilience and strategic initiatives, including the allotment of 39.23 crore shares at an issue price of Rs.535 per piece under the rights issue. Additionally, the company distributed dividends of Rs.4 for fully paid-up equity shares and Rs.1 for partly paid-up equity shares, each carrying a face value of Rs.5.

Important Questions Related to Exams

Q1. What milestone did Bharti Airtel achieve in terms of market capitalization?

Sol. Bharti Airtel’s market capitalization reached Rs.6 lakh crore, hitting this significant milestone.

Q2. What contributed to the surge in Bharti Airtel’s market sentiment?

Sol. Positive market sentiment was attributed to the Bhartiya Janta Party’s resounding victory in state elections.

Q3. How much did Bharti Airtel’s stock increase during Monday’s trade?

Sol. Bharti Airtel’s stock witnessed a 2% increase during Monday’s trade.

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