Bharti Hexacom Q3 Review: ICICI Securities Maintains 'Hold' On The Stock, Lowers Target Price — Here's Why

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ICICI Securities Report

Bharti Hexacom Ltd.’s Q3 FY25 Ebitdaal soared 43% YoY; free cash flow after interest cost was up 97% and net debt slipped 2.5%. Bharti Hexacom has been adding to its already strong adjusted gross revenue market share in both its circles – Rajasthan and North East.

Bharti Hexacom exhibited impressive performance across each key parameter – subscriber, smartphone data subscriber, average revenue per user, capex, FCF and deleverage; and we believe, Bharti Hexacom will likely start rewarding investors with generous dividends.

Bharti Hexacom’s pre-tax RoCE to reach 21%/29% in FY25E/FY26E. It would benefit further by the sale of its 3,400 tower for Rs 11.3 billion to Indus Towers.

We tweak our EPS estimate a tad; accordingly, our target price stands at Rs 1,410 (from Rs 1,400) with an unchanged EV/Ebitda multiple of 14 times. Maintain Hold as risk-reward at 3.2% FY27E FCFF yield appears to be more balanced.

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