BHARTIHEXA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | BHARTIHEXA | Market Cap | 75,870 Cr. | Current Price | 1,517 ₹ | High / Low | 2,053 ₹ |
| Stock P/E | 43.0 | Book Value | 125 ₹ | Dividend Yield | 0.66 % | ROCE | 17.4 % |
| ROE | 25.2 % | Face Value | 5.00 ₹ | DMA 50 | 1,567 ₹ | DMA 200 | 1,637 ₹ |
| Chg in FII Hold | -0.29 % | Chg in DII Hold | 0.32 % | PAT Qtr | 481 Cr. | PAT Prev Qtr | 421 Cr. |
| RSI | 45.0 | MACD | -11.0 | Volume | 5,87,015 | Avg Vol 1Wk | 5,01,235 |
| Low price | 1,439 ₹ | High price | 2,053 ₹ | PEG Ratio | 0.30 | Debt to equity | 1.06 |
| 52w Index | 12.8 % | Qtr Profit Var | 48.7 % | EPS | 35.1 ₹ | Industry PE | 41.0 |
📊 Bharti Hexacom (BHARTIHEXA) demonstrates strong profitability with ROE at 25.2% and ROCE at 17.4%, supported by consistent earnings growth (PAT rose from 421 Cr. to 481 Cr., +48.7% variation). Debt-to-equity at 1.06 indicates high leverage, which adds financial risk. Valuations are slightly above industry average with a P/E of 43.0 vs 41.0, but PEG ratio of 0.30 suggests attractive growth relative to price. EPS of 35.1 ₹ reflects solid profitability, while dividend yield of 0.66% provides moderate investor appeal. Overall, the company’s telecom business model and regional dominance ensure long-term resilience, though debt and valuation risks must be monitored.
💡 Entry Zone: 1,500–1,520 ₹ (near support levels).
📈 Long-Term Holding Guidance: Attractive for long-term investors due to strong growth metrics and undervalued PEG ratio. Accumulate gradually and hold for 24+ months, with profit booking near 1,950–2,000 ₹ if valuations stretch further.
✅ Positive
- Strong ROE (25.2%) and ROCE (17.4%) highlight efficient operations.
- PEG ratio of 0.30 indicates undervaluation relative to growth.
- Quarterly PAT growth (+48.7%) shows earnings momentum.
⚠️ Limitation
- High debt-to-equity ratio (1.06) increases financial risk.
- P/E of 43.0 slightly above industry average (41.0).
- Dividend yield of 0.66% is modest for income-focused investors.
📉 Company Negative News
- FII holdings declined (-0.29%), reflecting reduced foreign investor confidence.
- Stock trading below 200 DMA (1,637 ₹), showing medium-term weakness.
📈 Company Positive News
- DII holdings increased (+0.32%), showing domestic institutional support.
- Quarterly profit surged significantly, boosting investor sentiment.
🏭 Industry
- Telecom sector remains resilient with rising data demand and digital adoption.
- Industry P/E at 41.0 highlights moderate valuations compared to Hexacom’s premium.
🔎 Conclusion
⚖️ Bharti Hexacom is a fundamentally strong company with robust earnings growth and attractive PEG valuation. While debt levels and slightly stretched P/E pose risks, entry near 1,500–1,520 ₹ offers a favorable risk-reward setup. Best suited for long-term investors willing to accumulate gradually and hold for 24+ months, with profit booking near 1,950–2,000 ₹ if momentum sustains.