Since Hexacom's listing day, it has typically traded at a premium to Bharti Airtel. The premium looks optically higher as Airtel's Ebitda includes full Ebitda contribution from Airtel Africa and Indus Towers, but holds ~61.5% and ~50% stakes.
NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
We initiate coverage on Bharti Hexacom Ltd. with a Buy rating and a target price of Rs 1,625 (implying a 22% upside).
We build in ~23% Ebitda CAGR over FY24-27 for Hexacom, driven by:
~13% wireless ARPU CAGR on account of ~15% (or Rs 50/month) increase on the base plan from Dec'25,
continued market share gains,
robust ~75% incremental margins, and
ramp-up of FWA services, given the lower penetration of Home Broadband in Hexacom circles.
Hexacom has been up ~2.3x from its IPO price (since Apr'24), led by inexpensive IPO valuations (~7x FY26 EV/Ebitda versus ~9-10x multiple at that time for peers), wireless tariff hike, continued market share gains, and margin expansions.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
