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Bharti Hexacom stock hits record high, rises 7% 

Stocks
2 min Read Sep 13, 2024
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On September 13th, shares of Bharti Hexacom rose over 7%, reaching a new high of ₹1,383. This surge follows Jefferies' decision to upgrade the stock to a 'buy' recommendation and raise its target price to ₹1,600 per share, offering a promising outlook for those keen to invest in stocks.

Jefferies upgrade boosts stock performance

Jefferies, a global brokerage firm, upgraded Bharti Hexacom to a 'buy' rating, projecting a target price of ₹1,600 per share. On the National Stock Exchange (NSE), this implies a potential upside of 24% from its previous closing. Jefferies also revised its revenue and EBITDA estimates for FY26 and FY27, increasing them by 5-12%. Bharti Hexacom’s improved EBITDA and free cash flow to equity (FCFE) growth over FY 24-27 are expected to support higher valuations compared to its parent company, Bharti Airtel.

For investors looking to invest in stocks with strong growth potential, Bharti Hexacom's financial performance and positive outlook make it a compelling choice. Its robust cash flow and promising EBITDA growth indicate solid long-term returns.

Impressive financial performance in Q1 FY25

Bharti Hexacom’s financial results for Q1 FY25 have further strengthened its position in the market. The company reported a remarkable year-on-year (YoY) net profit increase of 101.90%, reaching ₹511.2 crore for the quarter ended 30th June 2024. This is a significant jump from ₹222.6 crore in the previous quarter, representing a quarter-on-quarter growth of 129.65%.

The company’s mobile services also saw impressive growth, with the Average Revenue Per User (ARPU) rising to ₹205, up from ₹194 in Q1 FY24. Strategic acquisitions and an enhanced customer mix drove this growth. Mobile data consumption also surged, with a 30.6% YoY increase, as customers averaged 25.7 GB of data per month.

Revenue growth and rising stock value

In addition to strong profits, Bharti Hexacom reported a solid 12.9% YoY growth in mobile services revenue, supported by better realisation and a steady increase in customer additions. This growth was fuelled by factors such as increased smartphone adoption, an enhanced service mix, and a higher ARPU.

At around 9:20 a.m. on September 13th, Bharti Hexacom shares were trading at ₹1,365, marking a 5.8% increase from the last close on the NSE. The stock has gained nearly 14% over the past month, making it a noteworthy option for investors looking to buy shares online.

Key takeaways

  • Bharti Hexacom's stock surged by over 7%, hitting a record high of ₹1,383 on 13th September.

  • Jefferies improved the stock to 'buy' with a target price of ₹1,600, offering a 24% upside potential.

  • The company’s Q1 FY25 net profit grew by 101.90% YoY to ₹511.2 crore, with ARPU increasing to ₹205.

  • Mobile services revenue grew by 12.9% YoY, driven by smartphone adoption and improved service offerings.

  • Bharti Hexacom shares have risen nearly 14% over the past month, making it an attractive option for those looking to invest in stocks.