Bharti Hexacom shares are in focus in trade on Wednesday after Jefferies cut its target price on the counter, citing inflationary pressures that could defer the upcoming tariff hikes.
In its latest note, the brokerage firm has maintained a 'buy' rating on the counter, but has cut the target price from Rs 2,110 to Rs 1,880. This comes on the back of a recent downtrend in Bharti Hexacom, with the stock falling around 15% on a year-to-date basis.
Jefferies believes the recent drawdown in Bharti Hexacom shares is due to concerns of delays in the tariff hike, which is expected to take place at the end of 2026.
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Keeping that in mind, the brokerage firm has cut revenue and Ebitda estimates for Bharti Hexacom by 7% and 11%, respectively. It now models a 15% tariff hike in December 2026, which could be the only tariff hike during the FY26 to FY28 period.
This is done mainly on the expectation that rising inflationary pressures could defer tariff hikes. Jefferies, though, remains overall bullish on the counter and believes the stock has an attractive risk-reward ratio for investors.
In the best-case scenario, Jefferies has pegged Bharti Hexacom to offer an upside of around 60%, whereas the stock could fall up to 15% in the worst-case scenario. The firm's current target price of Rs 1,880 implies an upside of around 23% from the current market price.
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