SingTel - Maybank Research 2024-07-01: Raise Target Price By 4% As Airtel Raises India Mobile Prices By 10-21%

• SingTel (SGX:Z74)’s 29%-owned associate Bharti Airtel said on Friday it raised mobile prices across various plans by 10-21% with an average price increase of 15%. Its competitors, Jio and Vi, have made similar price hikes.
• - Read this at SGinvestors.io -

How much can it help Bharti Airtel lift earnings?

• Factoring a price elasticity of 60%, we see the price increases lifting Bharti’s FY25-27 India mobile revenues by 7-9% (assuming a 9-month impact for FY25).
• Further assuming a pass-through impact of higher revenues on EBITDA at 60%, we see India mobile EBITDA rising 7-10% in FY25-27. This translates to an EBITDA lift of INR37-55bn (S$602-903m) for FY25-27.

Raise Singtel earnings estimates by 4-8%

• - Read this at SGinvestors.io -
• Factoring in the impact of India mobile prices increasing in our SingTel model, we raise our SingTel earnings estimates 4-8% in FY25-27.

Raise Singtel target price by 4% to S$3.40

• Read more at SGinvestors.io.

Hussaini Saifee Maybank Research | https://www.maybank-ke.com.sg/ 2024-07-01 SGinvestors.io

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