Bharti Hexacom shares surge 9% intra day as JPMorgan turns overweight
Bharti Hexacom stock surged 9.33% against the previous close of Rs 1065.55 on BSE. Market cap of the firm rose to Rs 57,125 crore.
- Jul 16, 2024,
- Updated Jul 16, 2024 3:59 PM IST
Shares of Bharti Hexacom rose over 9% on Tuesday after the global brokerage JP Morgan initiated coverage on the telecom infra firm with an ‘overweight’ tag. The brokerage assigned a price target of Rs 1,280, expecting a 20% rally from the previous close. Bharti Hexacom stock surged 9.33% against the previous close of Rs 1065.55 on BSE. Market cap of the firm rose to Rs 57,125 crore. Later, the stock ended 7.14% higher at Rs 1141.60 on BSE.
JPMorgan referred to Bharti Hexacom the best pure-play in the Indian market for communication solutions. "Bharti Hexacom is the best play on market repair thesis, given its presence in wireless as compared to Bharti Airtel and Vodafone Idea," JPMorgan stated.
The company operates in two underpenetrated circles of Rajasthan and the North East, that have lower telecom density, internet penetration and postpaid mix.
“Thanks to the underpenetration in these areas, the company enjoys stronger tailwinds from subscriber growth and organic ARPU(Average Revenue Per User) expansion,” JPMorgan noted.
According to JPMorgan the underlying returns will remain superior as the company's ARPU is only 2 percent lower than Bharti Airtel's.
The global brokerage expects a 15 percent hike in tariff each in FY25 and FY26 for Bharti Hexacom. The hike will drive a 17 percent and 21 percent revenue and EBITDA CAGR, respectively, over FY24-27.
The stock touched its all-time high of Rs 1368.65 on June 26, 2024 and a 52 week low of Rs 755.20 on April 12, 2024.
A total of 2.38 lakh shares of the firm changed hands, amounting to a turnover of Rs 27.48 crore on BSE. Market cap of the firm rose to Rs 57,080 crore. The stock made a strong market debut on April 12 this year.
Bharti Hexacom stock was listed at Rs 755.20 on BSE, a premium of 32.49 per cent over the issue price of Rs 570 per share. The stock listed a premium of 32.46 per cent at Rs 755 on NSE.
Bharti Hexacom Limited provides fixed-line telephone and broadband services to customers in Rajasthan and North East telecom circles in India.
Shares of Bharti Hexacom rose over 9% on Tuesday after the global brokerage JP Morgan initiated coverage on the telecom infra firm with an ‘overweight’ tag. The brokerage assigned a price target of Rs 1,280, expecting a 20% rally from the previous close. Bharti Hexacom stock surged 9.33% against the previous close of Rs 1065.55 on BSE. Market cap of the firm rose to Rs 57,125 crore. Later, the stock ended 7.14% higher at Rs 1141.60 on BSE.
JPMorgan referred to Bharti Hexacom the best pure-play in the Indian market for communication solutions. "Bharti Hexacom is the best play on market repair thesis, given its presence in wireless as compared to Bharti Airtel and Vodafone Idea," JPMorgan stated.
The company operates in two underpenetrated circles of Rajasthan and the North East, that have lower telecom density, internet penetration and postpaid mix.
“Thanks to the underpenetration in these areas, the company enjoys stronger tailwinds from subscriber growth and organic ARPU(Average Revenue Per User) expansion,” JPMorgan noted.
According to JPMorgan the underlying returns will remain superior as the company's ARPU is only 2 percent lower than Bharti Airtel's.
The global brokerage expects a 15 percent hike in tariff each in FY25 and FY26 for Bharti Hexacom. The hike will drive a 17 percent and 21 percent revenue and EBITDA CAGR, respectively, over FY24-27.
The stock touched its all-time high of Rs 1368.65 on June 26, 2024 and a 52 week low of Rs 755.20 on April 12, 2024.
A total of 2.38 lakh shares of the firm changed hands, amounting to a turnover of Rs 27.48 crore on BSE. Market cap of the firm rose to Rs 57,080 crore. The stock made a strong market debut on April 12 this year.
Bharti Hexacom stock was listed at Rs 755.20 on BSE, a premium of 32.49 per cent over the issue price of Rs 570 per share. The stock listed a premium of 32.46 per cent at Rs 755 on NSE.
Bharti Hexacom Limited provides fixed-line telephone and broadband services to customers in Rajasthan and North East telecom circles in India.