BHARTIHEXA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 How I’m Thinking About This

You’re asking for a full-spectrum fundamental analysis of Bharti Hexacom Ltd (BHARTIHEXA), a fast-growing telecom services provider with strong regional dominance. I’m evaluating its financial strength, valuation metrics, business model, and technical indicators to determine its long-term investment potential and ideal entry point.

📊 Core Financials Breakdown

Profitability & Growth

EPS: ₹27.5 — solid earnings base

PAT Qtr: ₹392 Cr vs ₹468 Cr — -16.2% QoQ, but YoY growth of +55.9%

ROE: 25.2%, ROCE: 17.4% — excellent return metrics

Debt-to-equity: 1.24 — high, but typical for telecom infrastructure investments

Dividend & Cash Flow

Dividend Yield: 0.58% — modest, consistent payout

Strong operating cash flows driven by high ARPU and subscriber growth

💰 Valuation Indicators

Metric Value Interpretation

P/E Ratio 59.5 Overvalued vs industry PE of 46.0

P/B Ratio ~14.4 Significant premium to book value

PEG Ratio 0.42 Attractive — growth justifies valuation

Intrinsic Value ~₹1,650–₹1,700 Trading near fair value

Valuation is elevated, but PEG ratio and ROE suggest it’s justified by strong growth.

📡 Business Model & Competitive Edge

Industry: Telecom — high capex, recurring revenue, strong regulatory oversight

Moat: Regional dominance in Rajasthan and Northeast India, strong ARPU, backed by Bharti Airtel

Catalysts

68.4% 1-year return with 20.7% quarterly revenue growth

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15.6% profit margin and improving operational efficiency

Technical forecast suggests 2025 targets of ₹1,767–₹1,802

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Long-term forecast projects ₹2,535 by 2026 and ₹5,359 by 2030

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Bharti Hexacom is executing a high-growth strategy in underserved regions with strong digital infrastructure.

📉 Technical & Entry Zone

Current Price: ₹1,710

DMA 50/200: Trading below 50 DMA, above 200 DMA — mixed signals

MACD: -19.7 — bearish momentum

RSI: 40.9 — approaching oversold zone

📌 Suggested Entry Zone: ₹1,650–₹1,690

This range offers a better margin of safety and aligns with technical support and intrinsic value.

🕰️ Long-Term Holding Guidance

Hold if already invested, especially for exposure to telecom growth

Buy on dips near ₹1,675 for long-term compounding

2026 Target Price: ₹2,535

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2030 Forecast: ₹5,359

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⭐ Fundamental Rating

4.4

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stockpricearchive.com

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walletinvestor.com

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