Bharti Hexacom Stock Soars 7% As Jefferies Initiates Buy Call With 24% Upside
Bharti Hexacom stocks trades at Rs 1,371 with 6.26 per cent gain in the afternoon session on the Bombay Stock Exchange (BSE)
The stocks of Bharti Hexacom rose 7 per cent in the Friday trading session to its fresh high of Rs 1,383 after the brokerage firm, Jefferies initiated a ‘buy’ call with a target price of Rs 1,600 per share.
Analysts at Jefferies predicted a potential upside of 24 per cent over the previous closing on the National Stock Exchange (NSE) with the revised target price. Bharti Hexacom stocks traded at Rs 1,371 with 6.26 per cent gain in the afternoon session on the Bombay Stock Exchange (BSE).
The firm has raised its projected revenue and EBITDA for FY 26 and FY 27 by 5 to 12 per cent. Premium valuations are anticipated to be supported by Bharti Hexacom's greater EBITDA and free cash flow to equity compounded annual growth rate (CAGR) of 25 per cent and 66 per cent respectively, over FY 24 to 27 in comparison to Bharti Airtel, stated Jefferies.
For the first quarter that concluded on 30 June 2024, Bharti Hexacom recorded a year-on-year (YoY) increase in net profit of 101.90 per cent to Rs 511.2 crore. The company's net profit increased 129.65 per cent from Rs 222.6 crore in the January-March quarter on a quarter-on-quarter (QoQ) basis.
The company's better customer mix and sustained emphasis on high-quality acquisitions drove an increase in its mobile average revenue per user (ARPU), which increased from Rs 194 in Q1 FY24 to Rs 205 in Q1 FY25. Averaging 25.7 GB per month, mobile data use increased 30.6 per cent YoY among the customers.
A strong YoY increase in Bharti Hexacom's mobile services revenue of 12.9 per cent was fueled by improved realisation and consistent client acquisition. Higher ARPU, a better service mix, and a rise in smartphone penetration all contributed to the firm’s growth.
