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 and lower capital misallocation concerns, we had argued for a slight premium to its parent, Bharti.
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
Since our coverage initiation in March 2025, Bharti Hexacom Ltd. has delivered 40%+ returns (vs ~15% for Bharti Airtel or Bharti) and now trades at ~19x one-year forward EV/Ebitda (or 37% premium to the implied EV/Ebitda multiple for Bharti's India business, vs ~15% on average since Bharat Hexacom's listing).
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 and lower capital misallocation concerns, we had argued for a slight premium to its parent, Bharti.
However, we believe a ~40% premium is steep and risk-reward is no longer attractive. We downgrade Bharti Hexacom to Neutral with an unchanged target price of Rs 1,900.
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.
