⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BHARTIHEXA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | BHARTIHEXA | Market Cap | 79,747 Cr. | Current Price | 1,595 ₹ | High / Low | 2,053 ₹ |
| Stock P/E | 45.2 | Book Value | 125 ₹ | Dividend Yield | 0.63 % | ROCE | 17.4 % |
| ROE | 25.2 % | Face Value | 5.00 ₹ | DMA 50 | 1,634 ₹ | DMA 200 | 1,669 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 0.04 % | PAT Qtr | 481 Cr. | PAT Prev Qtr | 421 Cr. |
| RSI | 49.3 | MACD | -35.5 | Volume | 1,39,529 | Avg Vol 1Wk | 2,20,858 |
| Low price | 1,225 ₹ | High price | 2,053 ₹ | PEG Ratio | 0.32 | Debt to equity | 1.06 |
| 52w Index | 44.7 % | Qtr Profit Var | 48.7 % | EPS | 35.1 ₹ | Industry PE | 37.3 |
📊 Financials
- Revenue Growth: Strong, PAT rose from 421 Cr. to 481 Cr. (+48.7% QoQ)
- Profit Margins: Healthy, EPS at 35.1 ₹
- Debt Ratios: Debt-to-Equity 1.06, relatively high leverage
- Cash Flows: Supported by consistent profitability
- Return Metrics: ROE 25.2%, ROCE 17.4% — solid efficiency
💹 Valuation
- P/E Ratio: 45.2 (premium vs Industry PE 37.3)
- P/B Ratio: ~12.8 (high, reflects market optimism)
- PEG Ratio: 0.32 (very attractive, undervalued relative to growth)
- Intrinsic Value: Current price (1,595 ₹) below DMA 50 (1,634 ₹) & DMA 200 (1,669 ₹), showing technical weakness
🏢 Business Model & Competitive Advantage
- Strong presence in telecom infrastructure and digital services
- Competitive advantage in enterprise solutions and technology integration
- High ROE indicates efficient capital use
- Debt levels remain a concern despite profitability
📈 Entry Zone Recommendation
- Entry Zone: 1,500–1,600 ₹ (near support levels, RSI neutral at 49.3)
- Long-Term Holding: Attractive due to strong fundamentals and growth potential, but leverage risk should be monitored
✅ Positive
- Strong quarterly profit growth (+48.7%)
- High ROE (25.2%) and solid ROCE (17.4%)
- PEG ratio indicates undervaluation relative to growth
- FII and DII holdings both increased (+0.04% each)
⚠️ Limitation
- High debt-to-equity ratio (1.06)
- P/E ratio above industry average
- Stock trading below DMA 50 & 200, showing technical weakness
📉 Company Negative News
- High leverage compared to peers
- Technical weakness with MACD negative (-35.5)
📈 Company Positive News
- Quarterly PAT growth strong (+48.7%)
- FII and DII holdings both increased
- PEG ratio suggests undervaluation relative to growth
🏭 Industry
- Telecom and digital infrastructure industry growing steadily
- Industry PE at 37.3, Bharti Hexacom trades at a premium
🔎 Conclusion
Bharti Hexacom shows strong profitability with high ROE and solid quarterly growth. Despite premium valuations and high debt levels, the PEG ratio indicates undervaluation relative to growth. Entry around 1,500–1,600 ₹ is favorable, and long-term investors can hold for telecom sector expansion, while keeping an eye on leverage risks.