BHARTIHEXA - Investment Analysis
Last Updated Time : 02 Aug 25, 12:58 am
Back to Investment ListInvestment 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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stockpricearchive.com
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