BHARTIHEXA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | BHARTIHEXA | Market Cap | 77,540 Cr. | Current Price | 1,551 ₹ | High / Low | 2,053 ₹ |
| Stock P/E | 44.1 | Book Value | 143 ₹ | Dividend Yield | 0.65 % | ROCE | 21.8 % |
| ROE | 26.9 % | Face Value | 5.00 ₹ | DMA 50 | 1,552 ₹ | DMA 200 | 1,623 ₹ |
| Chg in FII Hold | -0.29 % | Chg in DII Hold | 0.32 % | PAT Qtr | 463 Cr. | PAT Prev Qtr | 481 Cr. |
| RSI | 55.6 | MACD | 10.9 | Volume | 61,706 | Avg Vol 1Wk | 1,77,259 |
| Low price | 1,439 ₹ | High price | 2,053 ₹ | PEG Ratio | 0.93 | Debt to equity | 0.86 |
| 52w Index | 18.3 % | Qtr Profit Var | -1.09 % | EPS | 34.7 ₹ | Industry PE | 44.6 |
📊 Financial Overview: Bharti Hexacom (BHARTIHEXA) has a market cap of ₹77,540 Cr. Quarterly PAT stood at ₹463 Cr, slightly lower than ₹481 Cr in the previous quarter, reflecting stable but flat earnings. Debt-to-equity ratio is 0.86, indicating high leverage. ROCE at 21.8% and ROE at 26.9% highlight strong efficiency. Cash flows remain healthy due to recurring telecom revenues.
💹 Valuation Indicators: Current P/E of 44.1 is in line with the industry average of 44.6, suggesting fair valuation. P/B ratio is ~10.8 (1551 ÷ 143), which is high. PEG ratio of 0.93 indicates reasonable growth valuation. Intrinsic value appears close to current levels, making the stock moderately priced.
🏭 Business Model & Advantage: Bharti Hexacom operates in telecom services, offering mobile, broadband, and enterprise solutions. Its competitive advantage lies in strong brand presence under Airtel, wide distribution, and recurring revenues. However, high debt and competition from Reliance Jio and Vodafone Idea remain challenges.
📈 Entry Zone: A favorable entry zone would be around ₹1,450–1,500, near its recent low of ₹1,439 and below DMA levels. Current price of ₹1,551 is slightly above fair value, so accumulation is better on dips.
⏳ Long-Term Holding Guidance: Bharti Hexacom is structurally strong with recurring revenues and high return ratios. Long-term investors may hold confidently, but fresh entry should be cautious given high leverage and premium valuations.
Positive
- 🌟 Strong ROCE (21.8%) and ROE (26.9%).
- 🌟 PEG ratio of 0.93 indicates fair growth valuation.
- 🌟 DII holdings increased by 0.32%.
Limitation
- ⚠️ High debt-to-equity ratio (0.86).
- ⚠️ P/B ratio (~10.8) is elevated.
- ⚠️ Flat earnings with PAT decline from ₹481 Cr to ₹463 Cr.
Company Negative News
- 📉 Slight decline in quarterly profits (-1.09%).
- 📉 FII holdings reduced by 0.29%.
Company Positive News
- 📈 DII holdings increased by 0.32%.
- 📈 Stable recurring revenues from telecom services.
- 📈 Strong brand presence under Airtel.
Industry
- 🏭 Telecom industry in India is expanding with rising data consumption.
- 🏭 Industry P/E at 44.6 shows fair valuation compared to Bharti Hexacom.
- 🏭 Competition remains intense with Reliance Jio and Vodafone Idea.
Conclusion
✅ Bharti Hexacom is fundamentally strong with high return ratios and stable revenues. Valuations are fair compared to peers, but high debt remains a concern. Suitable for long-term holding, with accumulation recommended around ₹1,450–1,500 levels.
For deeper insights, you could explore a peer comparison or a technical chart analysis to complement this fundamental view.