⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.

BHARTIHEXA - Swing Trade Analysis with AI Signals

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Rating: 3.8

Last Updated Time : 05 May 26, 02:59 pm

📊 Swing Trade Rating: 3.8

Stock Code BHARTIHEXA Market Cap 75,011 Cr. Current Price 1,497 ₹ High / Low 2,053 ₹
Stock P/E 42.6 Book Value 125 ₹ Dividend Yield 0.67 % ROCE 17.4 %
ROE 25.2 % Face Value 5.00 ₹ DMA 50 1,564 ₹ DMA 200 1,636 ₹
Chg in FII Hold -0.29 % Chg in DII Hold 0.32 % PAT Qtr 481 Cr. PAT Prev Qtr 421 Cr.
RSI 41.3 MACD -12.5 Volume 62,438 Avg Vol 1Wk 4,13,012
Low price 1,439 ₹ High price 2,053 ₹ PEG Ratio 0.30 Debt to equity 1.06
52w Index 9.51 % Qtr Profit Var 48.7 % EPS 35.1 ₹ Industry PE 40.7

Analysis: Bharti Hexacom (BHARTIHEXA) presents a mixed outlook for swing trading. The current price of ₹1,497 is below both the 50 DMA (₹1,564) and 200 DMA (₹1,636), indicating short-term weakness. RSI at 41.3 suggests mildly oversold conditions, while MACD is negative (-12.5), reflecting bearish momentum. Fundamentally, ROE at 25.2% is strong, but ROCE at 17.4% is moderate. Debt-to-equity ratio of 1.06 is relatively high, adding financial risk. Valuation is slightly above industry average with a P/E of 42.6 vs. 40.7, but PEG ratio of 0.30 indicates attractive growth-adjusted value. Quarterly PAT growth (+48.7%) supports earnings momentum, though volumes are significantly lower than average, showing reduced participation.

Optimal Entry Price: ₹1,460–₹1,480 (near support zone).

Exit Strategy (if already holding): Consider profit booking near ₹1,560–₹1,580 resistance, with a stop-loss below ₹1,440.

✅ Positive

  • Strong ROE (25.2%) indicates efficient shareholder returns.
  • PEG ratio of 0.30 suggests attractive growth-adjusted valuation.
  • Quarterly PAT growth from ₹421 Cr. to ₹481 Cr. (+48.7%).
  • DII holdings increased (+0.32%), showing domestic institutional support.

⚠️ Limitation

  • High debt-to-equity ratio (1.06) adds financial risk.
  • Stock trading below both 50 DMA and 200 DMA, indicating weakness.
  • MACD negative (-12.5), suggesting bearish momentum.
  • Trading volume significantly below weekly average, showing reduced market interest.

📉 Company Negative News

  • FII holdings decreased (-0.29%), showing reduced foreign investor confidence.
  • Stock underperforming near-term moving averages.

📈 Company Positive News

  • Strong quarterly profit growth (+48.7%).
  • DII holdings increased (+0.32%), reflecting domestic support.
  • PEG ratio indicates strong growth potential despite high debt.

🏭 Industry

  • Telecom industry remains competitive but benefits from rising data demand.
  • Industry P/E at 40.7 indicates premium valuations across the sector.

🔎 Conclusion

Bharti Hexacom is a cautious swing trade candidate with strong earnings growth and attractive PEG ratio. Entry near ₹1,460–₹1,480 is favorable, with profit booking around ₹1,560–₹1,580. However, high debt, weak technicals, and reduced FII interest demand strict risk management. Traders should use a stop-loss below ₹1,440 to mitigate downside risks.

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