Bharti Airtel investors' windfall, 56% return. Stock market news.

Bharti Airtel investors' windfall, stock gives 56% return.

The tariff war between the telecom companies has now come to an end. After the end of this 'war', Bharti Airtel has joined the top telecom stocks of the world performing brilliantly. As per Bloomberg data, so far this year, Bharti Airtel shares have given 55.8 per cent returns. This is the third-best performance in telecom services and equipment maker stocks this year.

Airtel is ahead of American wireless data Product Company Ubiquity Networks and China's telecom equipment company ZTE. In 2019, Bharti Airtel has outperformed Bloomberg by 45 per cent over the World Telecom Index.

Since the decision to stop the price war, the health of domestic telecom companies has improved. Earlier, the condition of these companies was getting thin due to weak financial condition and excessive debt. In December, telecom companies increased the price of their prepaid plans by 33 per cent.

Adjusted gross revenue (AGR) of telecom companies declined by 10.1 per cent to Rs 1.44 lakh crore in the year 2018. Along with telecom companies like Bharti Airtel and Vodafone Idea, Reliance Jio has also announced an increase in prices. This has led to an improvement in the valuation of these companies.

Bharti Airtel plans to raise $ 3 billion. With this, the company will have better cash and AGR payment will be easier. However, the debt still remains the problem of Bharti Airtel. It has a debt-to-EBIDTA ratio of 3.94, which is the fourth-highest among telecom companies.

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