Singtel - DBS Research 2025-05-19: 27% HoldCo Discount To Narrow To Below 15%?

• SingTel has sold around 1.2% of its stake in India's Bharti Airtel for S$2bn. As per Reuters, this could translate to an estimated gain of S$1.4bn.

Rationale and usage of Bharti's stake sale

• - Read this at SGinvestors.io -
• The idea is to reinvest in its core business in Singapore and Australia. This could include new growth areas such as data-centres, GPU-as-a-service, and ICT opportunities. Core operating growth has shown a very high correlation with SingTel's share price, and could help to narrow the holding company discount, which is still over 25%, to the 10%-15% range.

Room to divest another 5% stake in Bharti Airtel in 3-5 years.

• - Read this at SGinvestors.io -

Maintain BUY with a higher target price.

• Read more at SGinvestors.io.

Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Previous report by DBS:
2025-02-20 Singtel - HoldCo Discount At 34% Is Too High To Sustain.

Price targets by other brokers at SingTel Target Prices.

Listing of research reports at SingTel Analyst Reports.

Relevant links:
SingTel Share Price History,
SingTel Announcements,
SingTel Dividend Payout Dates & Corporate Actions,
SingTel News