Budget 2020 My Pick: Craft Wealth Management’s Managing Director Ashish Kukreja has recommended Bharti Airtel stock as his top Buy ahead of Budget 2020. Kukreja has advised investors to include this stock in their portfolio.
Kukreja said that investors should not get deterred by problems being faced by Bharti Airtel and the telecom sector as a whole. He said that many of the problems that are being faced by Bharti Airtel are now getting resolved.
क्राफ्ट वेल्थ मैनेजमेंट के MD आशीष कुकरेजा ने किस शेयर को चुना बजट 2020 से पहले शानदार कमाई के लिए? जानें #BudgetMyPick में#ZeeBudget2020 #Budget2020 #UnionBudget2020 @AnilSinghvi_ pic.twitter.com/tQBp5ZO1Lh
— Zee Business (@ZeeBusiness) January 22, 2020
The MD said that he is also expecting the issue of Adjusted Gross Revenue (AGR) dues, that the sector now owes to the government may get some positive resolution. The Supreme Court had ruled against the telecom companies on the issue of AGR calculation methodology. The telecom companies are now before the SC, seeking some relief on the timeline of the payments to be made to the government. Bharti Airtel has over Rs 35000 cr in AGR dues to the government.
Kukreja also said that Bharti Airtel had got a good response in the recently held fundraising referring to Qualified Institutional Placement (QIP) and Foreign Currency Convertible Bonds (FCCB). Bharti Airtel has raised over Rs 21000 cr via the two routes.
He also said that there could be some announcements in the Budget 2020, which could augur well for the sector. The announcements could in the Budget 2020 be in the wake of problems being faced by the sector.
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Kukreja puts the Target price for the Bharti Airtel stock between Rs 600 and Rs 650 over a 1 year period. He said that the Bharti Airtel stock could reach these levels even if one goes by the conservative estimates. The stock is currently trading around Rs 511. The MD said that this was one large-cap stock that could do well, this year, and the Bharti Airtel stock had the potential to even become the stock of the year.