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Investors to benefit as Singtel's holding company discount rises to all-time high of 36% on Bharti's recovery: DBS

Uma Devi
Uma Devi5/22/2020 01:41 PM GMT+08  • 3 min read
Investors to benefit as Singtel's holding company discount rises to all-time high of 36% on Bharti's recovery: DBS
While DBS analyst Sachin Mittal expects Singtel to post a 26% year-on-year decline in 4QFY2020 earnings to $518 million, he says an ‘attractive’ dividend yield of 5.6% is in store for investors.
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SINGAPORE (May 22): Although the Covid-19 pandemic is expected to last throughout 2020, analysts say Singtel investors are likely to reap attractive returns.

And this might just be the right time for investors to accumulate Singtel shares, as DBS Group Research notes that the telco’s holding company (HoldCo) discount has risen to an all-time high of 36% compared to a historical average of 16%.

DBS analyst Sachin Mittal says this is due to a combination of a 32% year to date increase in Singtel’s India associate Bharti Airtel’s share price, and a 20% decline in Singtel’s own share price.

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