Bharti Airtel is likely to continue doing well backed by fundamentals and momentum, said telecom expert Rajiv Sharma, on Wednesday.

Bharti Airtel received regulatory approval to raise foreign direct investment (FDI) limit to 100 percent in its subsidiary companies.

Speaking in an interview with CNBC-TV18, Sharma said, “All the news are coming positive for Bharti, be it on the operating side where it started outperforming Jio in particular and the confidence of getting closer to Rs 200 average revenue per user (ARPU) or now the news about FDI increasing to 100 percent."

Sharma, however, said he was not in a position to give a target price.

He said the biggest catalyst for Bharti Airtel is the ARPU being closer to Rs 200 without tariff hike. “We are in interesting times in telecom sector where tariff hike has to happen because in couple of years the big 5G capex is coming. So the rerating has to happen right now before the capex related derating happens,” said Sharma.

According to him, Bharti Airtel could increase the ability to add subscribers in the upcoming auctions.

Disclosure:

Reliance Industries, the parent company of Reliance Jio, owns Network 18 that publishes CNBCTV18.com.

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(Edited by : Niral Sharma)