The Telecom Cellular & Fixed Line Services sector is a key driver of global connectivity, serving over 8.6 billion mobile subscriptions and 1.3 billion fixed-line connections worldwide. This sector enables voice, data, and internet services, with rapid growth in 5G networks and fiber-optic infrastructure transforming communication technologies.
With a market capitalization of Rs 69,950.00 crore, the shares of Bharti Hexacom Ltd were trading at Rs 1,398.10 per share, increased around 8.38 percent as compared to the previous closing price of Rs 1,290.00 apiece.
Brokerage Recommendations:-
Jefferies, one of the well-known brokerages globally, gave a ‘Buy’ call on the telecom stock with a target price of Rs 1,600 apiece, indicating a potential upside of 20 percent from Friday’s intraday low of Rs 1,335.1 per share.
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Recommendations Rational:-
The brokerage has increased its FY26 and 27 revenue and EBITDA estimates by 5-12 percent. Moreover, Bharti Hexacom’s higher EBITDA and free cash flow to equity (FCFE) CAGR of 25 percent and 66 percent, respectively, over FY24-27 compared to Bharti Airtel, are expected to support premium valuations.
Furthermore, the company’s mobile average revenue per user (ARPU) increased to Rs 205 in Q1 FY25 from Rs 194 in Q1 FY24, owing to a sustained emphasis on quality acquisitions and improved customer mix. Mobile data use increased 30.6 percent year on year, with each subscriber averaging 25.7 GB per month.
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Financial performance:-
Analyzing the company’s financial condition, revenue magnified by 14 percent from Rs 1,682 crore in Q1FY24 to Rs 1,911 crore in Q1FY25, during the same time frame net profit zoomed by 102 percent from Rs 253 crore to Rs 511 crore.
Ratio analysis:-
The company’s critical ratios show that the return on equity plummeted from 13.04 percent in FY22-23 to 10.87 percent in FY23-24, while the return on capital employed zoomed from 11.33 percent to 17.45 percent. The net profit margin (NPM) for fiscal year 23-24 is 7.11 percent.
Company profile:-
Bharti Hexacom is a telecommunications firm that provides mobile, landline, and internet services in North Eastern and Rajasthan circles of India. It is a subsidiary of Bharti Airtel, operating under the Airtel name.
Written by:- Abhishek Singh
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