BHARTIHEXA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.1

Here’s a focused breakdown of Bharti Hexacom Ltd (BHARTIHEXA)—a telecom-centric stock with solid financial momentum and emerging growth potential 📶📊

📑 Core Financials Overview

Revenue & Profit Momentum

PAT up from ₹324 Cr. to ₹468 Cr. — a 110% quarterly jump, showing strong traction.

EPS of ₹29.9 supports earnings validity despite premium pricing.

Profitability Metrics

ROE: 25.2% and ROCE: 17.4% — solid figures, indicating good returns on equity and efficient capital use.

Leverage Positioning

Debt to Equity: 1.24 — relatively high, but common in capital-intensive sectors like telecom.

Cash flow not disclosed, but rising profits point to operational strength.

🧮 Valuation Review

Metric Value Insight

P/E Ratio 69.3 Above industry average (49.9); premium pricing

P/B Ratio ~15.5 Rich valuation; caution for value seekers

PEG Ratio 0.49 Positive signal — stock growing faster than its valuation implies

Dividend Yield 0.54% Modest; not ideal for income-based portfolios

Intrinsic Value Estimated ~₹1,500–₹1,600 Current price slightly above fair range

🧬 Business Model & Competitive Edge

Strongly positioned in telecom services, particularly in data-led mobile growth and rural expansion.

Benefit from synergies with Bharti Airtel, offering infrastructure scale, brand strength, and spectrum access.

High capital spend offsets debt concern — infrastructure-heavy industry favors market leaders.

📉 Technical Overview & Entry Zone

RSI: 55.2 — neutral to slightly bullish territory.

MACD just positive; momentum flattening.

Price currently above DMA 200 (₹1,557) and close to DMA 50 (₹1,786) — indicating near-term strength but cautious optimism.

🎯 Suggested Entry Range

Accumulate on dips between ₹1,600–₹1,720

Aggressive investors may consider ₹1,500 level as ideal long-term entry

⏳ Long-Term Holding Guidance

📈 Strong growth, strategic positioning, and PEG advantage support multi-year holding.

⚠️ Valuation is stretched — only accumulate during price corrections.

🟢 Suitable for long-term growth investors (5–7 years horizon)

Want to build a side-by-side telecom sector comparison with Indus Towers or Reliance Jio? I’ve got charts and insights ready to roll 📡📘

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