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BHARTIHEXA - Investment Analysis

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

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Investment Rating: 4.2

📊 Fundamental Analysis of Bharti Hexacom Ltd (BHARTIHEXA)

Bharti Hexacom, a subsidiary of Bharti Airtel, operates in Rajasthan and the North East telecom circles. It has shown strong financial growth and operational efficiency

ROE (25.2%) & ROCE (17.4%): Excellent returns, indicating strong capital efficiency.

Debt-to-Equity (1.24): Moderate leverage, acceptable for telecom infrastructure-heavy businesses.

PEG Ratio (0.49): Attractive valuation relative to earnings growth.

EPS (₹29.9): Solid earnings per share, supporting long-term profitability.

Dividend Yield (0.54%): Modest, but consistent payout history.

📈 Technical & Valuation Insights

Current Price: ₹1,845

52-Week Range: ₹1,058 – ₹2,053

DMA 50 / DMA 200: ₹1,786 / ₹1,557 — trading above both, indicating bullish momentum

RSI (55.2): Neutral zone

MACD (0.21): Slightly positive, suggesting consolidation

Stock P/E (69.3) vs Industry P/E (49.9): Premium valuation, but justified by growth

🟢 Ideal Entry Price Zone

Based on valuation and technical trends

₹1,520 – ₹1,650: Ideal accumulation zone near support and historical buy levels

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₹1,450: Deep value zone if broader market corrects

Avoid fresh entry above ₹1,950 unless supported by strong quarterly results.

📈 Long-Term Outlook

Price Targets

2025: ₹1,979 – ₹2,008

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2026: ₹2,711 – ₹2,752

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2030: ₹7,424 – ₹7,535

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Growth Drivers

Strong EBITDA growth (53.57% YoY)

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Expanding subscriber base in underserved regions

Airtel’s backing ensures strategic and financial support

Risks

High P/E may limit short-term upside

Competitive pressures in telecom pricing

Regulatory risks in spectrum and tariffs

🛑 Exit Strategy (If Already Holding)

If you're already invested

Holding Period: 5–7 years to capture full telecom sector growth cycle

Exit Triggers

ROE drops below 18% for 2+ quarters

PEG ratio rises above 1.5 without EPS growth

Price exceeds ₹2,500 without earnings support — consider partial profit booking

Trailing Stop-Loss: ₹1,650 to protect downside

🧠 Final Verdict

Bharti Hexacom is a high-growth telecom stock with strong fundamentals and strategic backing from Airtel. While current valuations are rich, the PEG ratio and ROE justify long-term investment. Ideal for accumulation near ₹1,520–₹1,650 with a 5–7 year horizon. If holding, stay invested and monitor quarterly earnings and subscriber growth.

Would you like a comparison with peers like Indus Towers or Tata Communications to evaluate alternatives?

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hdfcsky.com

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stockpricearchive.com

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bing.com

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