Singtel Stock Rises as India Holdings Fuel 50% of Company Value

Singapore Telecommunications (Z74.SI) trades at S$4.54 after climbing 0.88% this week, buoyed by recognition that India accounts for roughly half its S$73.5 billion market value. Singtel’s 25-year-old stake in Airtel, India’s second-largest telecom, anchors a portfolio of Indian investments that have delivered outsized returns. Temasek, Singtel’s parent, calls India its best-performing market over the past decade. Meyka rates the stock B with a 12-month price target of S$5.00.

How India became half of Singtel’s value

Singtel purchased its stake in Airtel more than 25 years ago when Temasek owned the telecom. Today, Airtel ranks as India’s second-largest telecommunications company. The Indian holdings now represent approximately 50% of Singtel’s total market capitalisation, according to analysis published September 8. This concentration reflects the explosive growth of India’s telecom and tech sectors over two decades.

Temasek’s India track record shows why

Temasek realised one of its largest exits last year when it sold its 35% stake in Schneider Electric India for S$8.18 billion, after buying it for around S$860 million in 2020. That represents a nearly 10-fold return in five years. India is Temasek’s best-performing market on a 10-year basis, according to the sovereign fund’s own statement. Recent Temasek-backed IPOs in India have surged 40% to 100% since entering public trading.

Singtel’s dividend and growth outlook

Meyka grades Singtel A- with a buy recommendation, citing strong return on assets (5 rating) and solid ROE (4 rating). The stock trades at a 4.06% dividend yield, with trailing earnings per share of S$0.34. Singtel’s digital arms, NCS and Nxera, are riding strong cloud and AI demand, which should support future cash flow. Management’s continued divestments are freeing capital to repay debt and fund expansion.

Valuation signals mixed but upside potential remains

At S$4.54, Singtel trades at a price-to-earnings ratio of 13.4, below its 50-day average of S$4.43. The stock’s RSI sits at 60.73, suggesting neither overbought nor oversold conditions. Meyka’s 12-month forecast of S$5.00 implies 10% upside from current levels. The stock has climbed 6.3% over three months and 5.3% over one year, outpacing the broader market’s volatility.

Final Thoughts

Singtel’s Indian exposure, anchored by a quarter-century stake in Airtel, underpins half its value and explains Temasek’s conviction. With Meyka grading the stock A- and forecasting S$5.00, the data supports a hold for income-focused investors willing to ride India’s structural growth.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.