Latest news with #SingaporeTelecommunications
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Business Standard
16-05-2025
- Business
- Business Standard
Nifty logs 4.2% weekly gain on trade optimism, RBI rate cut hopes
India's benchmark Nifty ended the week with a 4.2 per cent rise, marking its best weekly run since April 18, as investors cheered a truce with Pakistan, trade talks with the United States (US), and expectations of domestic interest rate cuts. The Nifty ended at 25,020, down 42 points or 0.17 per cent, while Sensex ended Friday's session at 82,331, down 200 points or 0.24 per cent, paring its weekly gain to 3.6 per cent. The week began with the Sensex and Nifty posting their largest single-day gains in over four years, following a ceasefire agreement between India and Pakistan. Investors heaved a sigh of relief as the ceasefire eased concerns about the economic impact of a potential war breaking out between the two nuclear-armed neighbours. However, profit booking during the week dragged the indices down, fuelled by concerns that foreign portfolio investors (FPIs) may redirect funds to China and the US following the trade tariff truce. During the week, the US and China agreed to slash reciprocal trade tariffs for 90 days, with the US reducing duties on Chinese imports from 145 per cent to 30 per cent, while China trimmed its tariffs on US goods from 125 per cent to 10 per cent. This China-US deal sparked fears that foreign portfolio investor flows could move away from India. In April, India emerged as a haven amid global trade uncertainties, attracting foreign investments. Markets rose again later in the week after US President Donald Trump said India had offered to drop tariffs on US goods on Thursday. Following the sharp rise, experts believe, markets could remain range-bound going ahead. "The broader consolidation with a positive bias is likely to persist for the Indian markets, supported by easing geopolitical tensions, progress on trade agreements, and improving signs of macroeconomic stability," said Siddhartha Khemka, head of research for wealth management at Motilal Oswal Financial Services. The market breadth was positive on Friday, as the broader markets outperformed. The Nifty Midcap 100 index rose about a per cent, while the Nifty Smallcap index rallied close to 2 per cent. About 2,542 stocks advanced and 1,449 declined on the BSE. Bharti Airtel, which fell 2.8 per cent, was both the worst-performing Sensex stock and the biggest drag on the Sensex. The stock declined a day after over $1 billion stake sale by large shareholder Singapore Telecommunications. Domestic and foreign portfolio investors (FPIs) were the big buyers on Friday. FPIs were net buyers worth ₹8,831 crore, their biggest purchase since March 27, while domestic institutions were the net buyers worth ₹5,187 crore, their biggest since May 9. The Airtel mega block deal influenced the FPI and DII investment tally.
Business Recorder
16-05-2025
- Business
- Business Recorder
Singtel sells 1.2% stake in India's Bharti Airtel for $1.54 billion
Singapore Telecommunications said on Friday it had sold around 1.2% of its stake in India's Bharti Airtel for S$2 billion ($1.54 billion), netting an estimated gain of S$1.4 billion. Pastel, a unit of Singtel, sold 71 million shares in Airtel at 1,814 rupees apiece, reflecting a 2.85% discount to the closing price of Airtel's stock on Thursday. Singtel, which has been an investor in Airtel for over 20 years, said its stake would drop to 28.3%, valued at around S$48 billion, from 29.5% previously. Singtel has been selling shares in Airtel – a 3.3% stake to Bharti Telecom in 2022 and 0.8% to GQG Partners in March 2024. However, after the sale to GQG, the last one it reported, Singtel had said it had a 29% stake in Airtel. Since a 'strategic reset' in 2021, the Singapore-based firm has sought to effectively use its capital and also improve shareholder returns. 'This transaction allows us to crystalise value at an attractive valuation and underscores Singtel's commitment to disciplined capital allocation and sustained value realisation for shareholders,' CFO Arthur Lang said in a statement. Singtel also said it has been working with Bharti Enterprises – an Indian conglomerate run by Sunil Bharti Mittal and whose telecom arm is Airtel – 'to equalise its effective stake in Airtel in the medium term'. While Singtel did not specify that it was looking to match Mittal's stake in Airtel, Lang had, in 2023, said this was the target. Airtel signs with SpaceX to bring Starlink to India Singtel and Airtel did not respond to a Reuters email seeking comment. CLSA analyst Daxin Lin estimates Mittal's stake in Airtel to be about 23%. The sale was in line with Singtel's capital recycling plan and should not come as a surprise, given the aim to match Mittal's stake, Lin said in a note after media reports broke the news of the sale on Thursday. Singtel's shares were up 1.1% at S$3.79 in Singapore, while Airtel's shares were down 2.8% at 1816.3 rupees in Mumbai.
Business Times
16-05-2025
- Business
- Business Times
Singtel to sell US$1 billion stake in Bharti Airtel via block deals: report
[BENGALURU] Singapore Telecommunications (Singtel) is expected to sell shares worth US$1 billion in Indian telecom major Bharti Airtel on Friday (May 16) through block deals, the Business Standard newspaper reported on Thursday, citing sources. South-east Asia's largest telecom operator, Singtel, is looking to sell 47.6 million Airtel shares at a floor price of 1,800 rupees a share, a 3.6 per cent discount to the stock's last close, the report said. JP Morgan is likely to be the broker for the deal, it added. Singtel has been reducing its stake in Airtel for a while. In March last year, it sold shares worth US$711 million to GQG Partners. It held a 9.49 per cent stake in Airtel through its affiliate Pastel, according to exchange data as at March-quarter. Airtel and Singtel did not immediately respond to Reuters requests for comments. REUTERS
Yahoo
24-03-2025
- Business
- Yahoo
Singapore Telecommunications Limited's (SGX:Z74) Stock Going Strong But Fundamentals Look Weak: What Implications Could This Have On The Stock?
Singapore Telecommunications (SGX:Z74) has had a great run on the share market with its stock up by a significant 10% over the last three months. We, however wanted to have a closer look at its key financial indicators as the markets usually pay for long-term fundamentals, and in this case, they don't look very promising. In this article, we decided to focus on Singapore Telecommunications' ROE. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Singapore Telecommunications is: 3.1% = S$755m ÷ S$25b (Based on the trailing twelve months to December 2024). The 'return' refers to a company's earnings over the last year. One way to conceptualize this is that for each SGD1 of shareholders' capital it has, the company made SGD0.03 in profit. Check out our latest analysis for Singapore Telecommunications Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. It is hard to argue that Singapore Telecommunications' ROE is much good in and of itself. Even when compared to the industry average of 9.3%, the ROE figure is pretty disappointing. Thus, the low net income growth of 4.7% seen by Singapore Telecommunications over the past five years could probably be the result of it having a lower ROE. Next, on comparing with the industry net income growth, we found that Singapore Telecommunications' reported growth was lower than the industry growth of 13% over the last few years, which is not something we like to see. Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about Singapore Telecommunications''s valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. The high three-year median payout ratio of 73% (that is, the company retains only 27% of its income) over the past three years for Singapore Telecommunications suggests that the company's earnings growth was lower as a result of paying out a majority of its earnings. Additionally, Singapore Telecommunications has paid dividends over a period of at least ten years, which means that the company's management is determined to pay dividends even if it means little to no earnings growth. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to rise to 96% over the next three years. Regardless, the future ROE for Singapore Telecommunications is speculated to rise to 12% despite the anticipated increase in the payout ratio. There could probably be other factors that could be driving the future growth in the ROE. In total, we would have a hard think before deciding on any investment action concerning Singapore Telecommunications. As a result of its low ROE and lack of much reinvestment into the business, the company has seen a disappointing earnings growth rate. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
19-02-2025
- Business
- Yahoo
Singapore Telecommunications (SGX:Z74) Could Be At Risk Of Shrinking As A Company
If you're looking at a mature business that's past the growth phase, what are some of the underlying trends that pop up? Businesses in decline often have two underlying trends, firstly, a declining return on capital employed (ROCE) and a declining base of capital employed. This combination can tell you that not only is the company investing less, it's earning less on what it does invest. In light of that, from a first glance at Singapore Telecommunications (SGX:Z74), we've spotted some signs that it could be struggling, so let's investigate. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Singapore Telecommunications: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.036 = S$1.3b ÷ (S$45b - S$9.0b) (Based on the trailing twelve months to September 2024). Therefore, Singapore Telecommunications has an ROCE of 3.6%. Ultimately, that's a low return and it under-performs the Telecom industry average of 11%. View our latest analysis for Singapore Telecommunications Above you can see how the current ROCE for Singapore Telecommunications compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for Singapore Telecommunications . There is reason to be cautious about Singapore Telecommunications, given the returns are trending downwards. Unfortunately the returns on capital have diminished from the 6.0% that they were earning five years ago. Meanwhile, capital employed in the business has stayed roughly the flat over the period. Since returns are falling and the business has the same amount of assets employed, this can suggest it's a mature business that hasn't had much growth in the last five years. So because these trends aren't typically conducive to creating a multi-bagger, we wouldn't hold our breath on Singapore Telecommunications becoming one if things continue as they have. All in all, the lower returns from the same amount of capital employed aren't exactly signs of a compounding machine. Despite the concerning underlying trends, the stock has actually gained 34% over the last five years, so it might be that the investors are expecting the trends to reverse. Either way, we aren't huge fans of the current trends and so with that we think you might find better investments elsewhere. Like most companies, Singapore Telecommunications does come with some risks, and we've found 1 warning sign that you should be aware of. While Singapore Telecommunications isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
