Broker’s call: Bharti Hexacom (Buy)

Table of Content


Target: ₹1,625

CMP: ₹1,335.70

Bharti Hexacom (Hexacom), the licensed operator of wireless and fixed-line services under the Airtel brand in Rajasthan and North East circles, provides pureplay exposure to the two high-growth businesses of Airtel – India wireless and Home broadband. Moreover, given lower teledensity and lower internet penetration in Hexacom circles (vs. pan-India), we believe Hexacom can potentially grow a few percentage points faster than Airtel on both subscribers and ARPU.

Further, with significantly lower penetration of fixed broadband in Hexacom’s circles and the recent ramp-up of Fixed Wireless Access (FWA) offerings, we believe Hexacom’s wired broadband business could also grow at a faster clip.

We initiate coverage on Hexacom with a Buy rating and a TP of ₹1,625, premised on 13x FY27E EV/EBITDA (on par with our Airtel’s India wireless multiple). Our preference for Hexacom over Airtel is largely driven by lower capital misallocation concerns.

Our scenario analysis indicates a favourable risk-reward for Hexacom with about 41 per cent upside in our bull case TP of ₹1,875, premised on a 20 per cent tariff hike in Dec’25, followed by about 7 per cent ARPU CAGR over FY27-34 and a modest 13 per cent downside in our bear case TP of ₹1,150, which is premised on 10 per cent tariff hike in Dec’25, followed by around 5 per cent ARPU CAGR over FY27-34.





Source link

AIMPWA

mmkrishnandasu@gmail.com http://msmenews.sbs

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent News

Trending News

Editor's Picks

In a post-Trump world, trade gets special focus in budget; govt opens domestic market for some imported vehicles

As US president Donald Trump threatens to impose reciprocal tariffs on its trading partners, potentially upending global commerce, India has placed a significant emphasis on invigorating manufacturing and exports while also opening up the domestic market. As part of the customs duty rejig, the government lowered import tax on a range of products such as...

Centre sets new five-year target to cut debt to half of GDP; signals robust capital spending, support to states

The Union budget has set a new five-year target to cut the central government’s debt to 50% of gross domestic product, give or take 1%, by 31 March, 2031. The budget, presented by finance minister Nirmala Sitharaman on Saturday, also sought to signal the Narendra Modi administration’s commitment to fiscal prudence and infrastructure creation, including...

ALL INDIA MSMES PROMOTION AND WELFARE ASSOCIATION

Quick Links

Popular Categories

Must Read

AIMPWA © 2025- All Right Reserved. Designed and Developed by  growGX.com