जेफ़रीज़ द्वारा स्टॉक को आईपीओ कीमत से लगभग दोगुना देखने के बाद भारती हेक्साकॉम के शेयरों में 8% से अधिक की उछाल आई।

Bharti Hexacom shares jumped more than 8% after Jefferies saw the stock at almost double its IPO price.

Bharti Hexacom shares surge 8% as Jefferies initiates 'Buy' with ₹1,080 target.

Business
327
16, Apr, 2024

Jyoti Ahlawat

@JyotiAhlawat

Bharti Hexacom shares jumped more than 8% after Jefferies saw the stock at almost double its IPO price.

Bharti Hexacom, a fully-owned subsidiary of telecom giant Bharti Airtel, experienced a surge of over 8% in trading on Tuesday following the initiation of coverage by global brokerage firm Jefferies. Jefferies bestowed a 'Buy' rating on the stock with a price target of ₹1,080, citing a robust growth outlook and favorable margin expansion. This price target from Jefferies stands as the most optimistic on the market, indicating a potential 34% increase from Monday's closing price.

Jefferies views Bharti Hexacom as the prime opportunity within the Indian telecom sector, emphasizing its accelerated growth, superior return on capital employed (ROCE), and enhanced free cash flow (FCF) conversion compared to other segments of Bharti Airtel's business.

The brokerage anticipates a 16% compound annual growth rate (CAGR) in revenue and a 21% CAGR in EBITDA from fiscal year 2024 to 2027. Coupled with a reduction in capital expenditure, this is expected to result in a 40% CAGR in FCF, driving significant deleveraging and potentially higher dividend payouts by FY27.

Additionally, JM Financial, a domestic brokerage, also initiated coverage on Bharti Hexacom, affixing a ‘Buy’ rating with a price target of ₹790 per share. It views Bharti Hexacom as a midcap opportunity centered on the structural growth story of wireless average revenue per user (ARPU).

Bharti Hexacom provides communication solutions, including mobile, fixed-line, and broadband services, primarily in Rajasthan and the North East telecommunication circles in India. Its spectrum portfolio enables the provision of advanced services like 5G+ to customers.

Owned mostly by Bharti Airtel, Bharti Hexacom debuted on the stock exchanges on April 12, trading at a 32% premium to its issue price of ₹570. Despite closing slightly lower at ₹807.30 on Monday, the stock continues to attract attention from investors.

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