Before you assume it’s an unfair comparison, think about it…
Today, mobile connectivity is just as essential as your daily-use essentials like shampoo and soap. In fact, you may need mobile data to order the same shampoo and soap from the nearest quick-delivery service!
Jefferies highlights that while entry barriers in FMCG are declining due to aggressive new-age competition, the telecom industry has shifted to a high-barrier landscape. Competition in consumer products is intensifying, whereas telecom has structurally moved toward a duopoly.
Bharti Airtel seems to be in a strong position –
🔹 ARPU compounding at ~10%
🔹 Steady volume growth of 2-3%
🔹 Among the most affordable consumer plays today
Further, valuation remains attractive:
EV/EBITDA ~12-13x vs. 20-30x for many consumer peers
Sometimes, the most compelling consumer opportunity isn’t on your shelves – it’s in your pocket.
*Disclaimer – Not a Recommendation
