Bharti Airtel Ltd.
ISIN: INE397D01024 • Market Cap: —
The 5-Pillar Quality Audit for Bharti Airtel Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (56.9%), Return on Capital Employed (19.5%), and equity compounding (17.9%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.82 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (13.6%) and 3Y PAT CAGR (69.0%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 41.55 vs PEG of — and Dividend Yield of 1.3%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 48.9%, backed by 48.4% institutional ownership.
Key Fundamental Strengths
High-Velocity Profit Compounding (3Y PAT CAGR: 69.0%)
Net earnings have compounded at 69.0% annualized, demonstrating operating leverage.
Deep Institutional Sponsorship (48.4%)
Mutual funds, domestic DIIs, and foreign FIIs hold 48.4%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Telecommunication)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Telecommunication space.
Quantitative Strategy Eligibility
Checking BHARTIARTL against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 76/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Telecommunication Sector Peer Comparison
Compare BHARTIARTL directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Bharti Airtel Ltd. (BHARTIARTL)Current | 76/100 | — | 41.55 | 19.5% | 0.82 | — |
| Vodafone Idea Ltd. (IDEA) | 65/100 | ₹1.52 Lakh Cr | 4.07 | -1.7% | -4.18 | View |
| Indus Towers Ltd. (INDUSTOWER) | 76/100 | ₹97,876 Cr | 13.68 | 18.4% | 0.02 | View |
| Bharti Hexacom Ltd. (BHARTIHEXA) | 79/100 | ₹79,950 Cr | 43.83 | 23.9% | 0.38 | View |
| Tata Communications Ltd. (TATACOMM) | 59/100 | ₹47,330 Cr | 50.04 | 17.0% | 3.14 | View |
| HFCL Ltd. (HFCL) | 62/100 | ₹34,668 Cr | 60.55 | 8.6% | 0.37 | View |
Frequently Asked Questions: Bharti Airtel Ltd.
Q:What is the 5-Pillar Fundamental Score for Bharti Airtel Ltd. (BHARTIARTL)?
Bharti Airtel Ltd. has a RupeeTools Fundamental Score of 76/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (81/100), Financial Health (72/100), Growth (85/100), Valuation (55/100), and Ownership Quality (82/100).
Q:Is BHARTIARTL fundamentally strong for long-term investment?
Yes, BHARTIARTL exhibits solid fundamental strength with a 76/100 score, driven by a return on equity of 17.9% and a debt-to-equity ratio of 0.82.
Q:Does BHARTIARTL pass the Coffee Can Investing filter?
Yes! BHARTIARTL satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does BHARTIARTL compare against other Telecommunication peers?
Within India's Telecommunication sector, BHARTIARTL trades at a P/E of 41.55 and generates an ROCE of 19.5%. Compare its 5-Pillar score of 76/100 against top sector peers like Vodafone Idea Ltd. (65/100), Indus Towers Ltd. (76/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.