Latest news with #BhartiHexacom
Hans India
07-06-2025
- Business
- Hans India
Bharti Hexacom shares fall 3.5% after Motilal Oswal downgrade
Mumbai: Bharti Hexacom's shares dropped over 3.5 per cent to Rs1,810 on Friday during the intra-day trading session on the National Stock Exchange (NSE), after brokerage firm Motilal Oswal downgraded the stock from a 'Buy' to a 'Neutral' rating and set a target price of Rs1,900. The brokerage said the downgrade was mainly due to the stock's high valuation, which is currently around 40 per cent more expensive than Bharti Airtel. 'Risk-reward no longer attractive; downgrade to Neutral,' said the brokerage. Motilal Oswal believes this makes the risk-reward profile less attractive for investors, even though the company continues to show strong performance and growth through premium services. It expects Bharti Hexacom to become debt-free (excluding lease liabilities) by the financial year 2027. The brokerage also predicts that the company's dividend will rise from Rs10 per share in FY25 to Rs30 per share by FY27. The average revenue per user (ARPU) is expected to go up from Rs242 in FY25 to Rs284 by FY27, supported by a likely tariff hike in December 2025. Beyond FY28, the brokerage expects ARPU to grow at a slower rate of 5.5 per cent annually, while overall revenue and EBITDA growth may settle around 7 per cent. However, the firm added that any significant boost in valuation will depend on ARPU growing faster than expected. Motilal Oswal also flagged some concerns. Bharti Hexacom's operations are concentrated in a few telecom circles, which could limit further growth. Additionally, the government still holds a 15 per cent stake in the company, and this is seen as a risk factor -- especially because the government lacks board representation and had earlier raised objections related to the Indus Towers deal, the brokerage said. The brokerage also mentioned that any potential corporate moves, such as stake sales, could put pressure on the stock's valuation. It further warned that a possible merger with Bharti Airtel could be risky, especially if the share swap ratio turns out to be unfavourable due to Bharti Hexacom's current high valuation. Around 12:45 pm on Friday, Bharti Hexacom was trading at Rs1,810, down about 3.62 per cent or Rs68. The stock has still gained 24 per cent so far this year and has jumped 74 per cent over the past 12 months.
Business Standard
06-06-2025
- Business
- Business Standard
Bharti Hexacom drops after broker downgrade
Bharti Hexacom dropped 4% to Rs 1,804.75 after a domestic brokerage downgraded the stock from 'Buy' to 'Neutral' with a target price of Rs 1,900. The downgrade was attributed to a steep 40% valuation premium over Bharti Airtel and an unfavourable risk-reward profile. The brokerage projects Bharti Hexacoms net debt (excluding leases) will be zero by FY27 and expects dividends to rise from Rs 10 per share in FY25 to Rs 30 in FY27. ARPU (Average Revenue Per User) is estimated to increase from Rs 242 in FY25 to Rs 284 by FY27, driven by a likely tariff hike in December 2025. Post-FY28, ARPU is forecast to grow at a 5.5% CAGR, while revenue and EBITDA growth are expected to moderate to around 7%. Despite strong execution and premiumisation, the firm flagged concerns over Bharti Hexacoms limited geographic spread, which could cap growth. The governments 15% stake remains an overhang, especially with no board representation and past objections around the Indus Towers deal. It also cautioned that potential corporate actions such as stake divestments could weigh on valuations. A possible merger with Bharti Airtel was flagged as a structural tail risk, with the risk of an unfavourable swap ratio due to elevated valuations. Bharti Hexacom is a communications solutions provider offering consumer mobile services, fixed-line telephone and broadband services to customers in the Rajasthan and the North East telecommunication circles in India, which comprises the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura. It offers services under the brand 'Airtel'. On a standalone basis, net profit of Bharti Hexacom surged 110.42% to Rs 468.40 crore while net sales rose 22.54% to Rs 2289 crore in Q4 March 2025 over Q4 March 2024.
Time of India
06-06-2025
- Business
- Time of India
Bharti Hexacom shares drop 3% after Motilal Oswal downgrades to neutral, citing steep valuation premium
Bharti Hexacom shares declined nearly 3% to Rs 1,827 in Friday's trading session on the BSE following a downgrade by Motilal Oswal. The domestic brokerage changed its rating from Buy to Neutral and set a target price of Rs 1,900. Motilal Oswal cited a steep 40% valuation premium compared to Bharti Airtel as a key reason for the downgrade, calling the current risk-reward profile unfavourable. While the company's execution remains robust with strong premiumisation, several concerns remain. The brokerage expects Bharti Hexacom's net debt (excluding leases) to be zero by FY27, and forecasts a rise in dividends from Rs 10 per share in FY25 to Rs 30 per share by FY27. ARPU (Average Revenue Per User) is projected to increase to Rs 284 by FY27, up from Rs 242 in FY25, following an expected tariff hike in December 2025. Post FY28, Motilal Oswal expects a 5.5% CAGR in ARPU, with moderated revenue and EBITDA growth at around 7%. However, the upside in valuation depends on a sharper ARPU trajectory. The brokerage noted risks including higher concentration in Bharti Hexacom's key circles, which may limit incremental gains. Additionally, Gol's 15% stake in the company remains an overhang, compounded by the absence of board representation and past objections related to the Indus Towers deal. Potential corporate actions like divestments could also pressure valuations. Motilal Oswal pointed out that a merger with Bharti Airtel poses a structural tail risk, as the swap ratio may be unfavourable given the elevated valuation. Also Read: From Zoho's Radha Vembu to Nykaa's Falguni Nayar: India's top 10 first-gen women wealth creators in 2025 Due to these factors, Motilal Oswal prefers Bharti Airtel and Reliance Jio over Bharti Hexacom in the telecom space. At 10:04 am, Bharti Hexacom was trading 2% lower at Rs 1,841.2 on the BSE. The stock has surged 24% year-to-date and 74% over the past 12 months. The company's market capitalisation stands at Rs 91,857 crore. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
06-06-2025
- Business
- Time of India
Top stocks to buy or sell today: Stock recommendation for June 6
J P Morgan has an overweight rating on Reliance Industries with a price target of Rs 1,568. Analysts feel that RIL's Earnings in the next two years should be better than the last two. They said that RIL's stock price has felt the pressure of large earnings cuts driven by weaker commodity EBIT (earnings before interest and taxes). This should not recur (given the already low margins). Consumer business growth should translate better to bottom-line, helping relative performance. Motilal Oswal Financial services has downgraded Bharti Hexacom to neutral with the target price at Rs 1,900 as analysts feel the risk-reward for the stock is no longer attractive. They said that since they started their coverage of the stock in Mar ch 2-25, the stock has delivered 40%+ returns. Given that Bharti Hexacom provides a pure-play exposure to Bharti's fast-growing India wireless and homes business with slightly higher growth prospects, better RoCE (return on capital employed) and lower capital misallocation concerns, they had argued for a slight premium to its parent, Bharti Airtel. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Amazon CFD : La clave para un ingreso extra (Conoce más) Empezar ahora Registrarse Undo However, analysts now believe a premium of about 40% is steep and risk-reward is no longer attractive. Morgan Stanley has an overweight rating on Vishal Megamart with a price target of Rs 161. Analysts said that the management believes the company can continue the current pace of store expansion in the medium term. The company has come a long way from close to bankruptcy to emerging as a successful aspirational (value) retailer. Incred Equities has maintained its add rating on TCS but with a reduced target price of Rs 3,589 from Rs 3,925 earlier. Analysts said that TCS shows better operating cash flow, dividend payout ratio certainty, and healthy return ratios, all of which support valuation while a slower recovery in North America and the FSI vertical, weak bookings, and higher project cancellations are downside risks. Elara Securities India has an accumulate rating on KEC International with the target price at Rs 1,020. Analysts said their rating is based on a robust order pipeline from domestic as well as international markets, scope for margin improvement, reduction of debt, potential for value unlocking through demerger of the cables business, and recovery of stuck cash from both civil and rail projects. With robust momentum in power T&D, real estate and infra, KEC Intl remains a preferred player in the EPC space with a prominent international presence to further boost visibility, they said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
&w=3840&q=100)
Business Standard
03-06-2025
- Business
- Business Standard
Bharti Hexacom stock hits new high, zooms 58% from April low; here's why
The stock price of this telecom services provider quoted higher for the seventh straight trading day, surging 16 per cent during this period. Listen to This Article Share price of Bharti Hexacom today Shares of Bharti Hexacom hit a new high of ₹1,933.45, as they rallied 4.5 per cent on the BSE in Tuesday's intra-day trade in an otherwise weak market on a healthy business outlook. The stock price of telecom services provider was quoting higher for the seventh straight trading day, surging 16 per cent during this period. It has bounced back 58 per cent from its three-month low of ₹1,225 touched on April 7, 2025. At 10:22 AM; Bharti Hexacom was quoting 3 per cent higher at ₹1,908.35, as compared to 0.07 per cent
