Indian mobile tariffs to rise 10% in 2025, Jefferies says

Bharti Hexacom

13/01/2025 06:07

** Jefferies expects Indian mobile tariffs to rise by 10% in
2025 as interest of operators and government aligned 
** Telcos Bharti Airtel  BRTI.NS , Reliance's  RELI.NS  Jio,
Vodafone Idea  VODA.NS  likely to continue their focus on
monetization by further tariff hikes - Jefferies
    ** Government, largest shareholder in VODA, "may also favor
tariff hikes", brokerage says
    ** Says pick-up in revenue growth, moderating capex to
support healthy margin expansion, free cash flow generation
    ** BRTI favorably positioned to gain from ongoing tariff
hikes; Jefferies maintains "buy"; raises PT to 2040 rupees from
1920 rupees 
    ** Says Bharti Hexacom  BHAX.NS  best way to play rising
tariffs given its markets witnessed greater translation of
tariff hikes into ARPUs in past; maintains "buy" and raises PT
to 1730 rupees from 1675 rupees 
    ** BRTI, BHAX, RELI down 0.2%, 2.8%, 0.2%,
respectively; VODA up 3.3%
     
     

 (Reporting by Aleef Jahan in Bengaluru)
 ((mailto:aleefjahan.cs@thomsonreuters.com))