BHARTIHEXA - Fundamental Analysis: Financial Health & Valuation

📈 Positive

• ROE of 25.2% and ROCE of 17.4% — excellent return metrics for a telecom operator.
• PEG ratio of 0.45 — earnings growth is attractively priced.
• EPS of ₹27.5 — solid earnings performance.
• MACD positive at 36.9 and RSI at 59.8 — bullish technical indicators.
• DII holding increased by 0.43% — signals domestic institutional confidence.
• Trading above DMA 50 and DMA 200 — confirms strong upward trend.

⚠️ Limitation

• P/E ratio of 64.8 vs industry average of 54.6 — trades at a premium.
• Book Value of ₹119 vs current price of ₹1,862 — high P/B ratio.
• Debt-to-equity ratio of 1.24 — moderately high leverage, typical for telecom but worth monitoring.
• Dividend yield of 0.54% — modest income for yield-focused investors.
• Volume below average — may reflect short-term cooling in market interest.

📉 Company Negative News

• Q2 PAT dropped to ₹392 Cr from ₹468 Cr — sequential decline.
• FII holding declined by 0.39% — signals mild foreign investor caution.

📢 Company Positive News

• Qtr Profit Var of 55.9% — strong YoY earnings growth.
• Stock up 76.9% over the past year — reflects investor confidence.
• Strategic expansion in underserved telecom circles driving subscriber growth.

🏭 Industry

• Telecom sector benefits from rising data consumption, digital transformation, and 5G rollout.
• Industry P/E of 54.6 — Bharti Hexacom trades at a premium, reflecting growth expectations.
• High capex and regulatory pressures remain key challenges.

🧾 Conclusion

• Business Model: Regional telecom operator with strong presence in Rajasthan and Northeast India, backed by Bharti Airtel.
• Competitive Advantage: Strategic market positioning, brand leverage, and expanding digital infrastructure.
• Entry Zone: ₹1,750–₹1,800 — near DMA 50 and technical support.
• Long-Term Holding: Suitable for growth-oriented investors with a 3–5 year horizon and moderate risk appetite.