Bharti Hexacom soars after telecom operator reports strong Q4 results; brokerage raises target

Bharti Hexacom Share Price: Bharti Hexacom soared over 5.50 per cent on BSE on Wednesday after the company reported strong operational results for its fourth quarter (January-March quarter) a day ago.

The stock that closed at Rs 901.05 in the previous session soared by 5.54 per cent to Wednesday's high of Rs 951.00.

After it reported Q4 results, brokerage Jefferies raised the target for the telecom operator's stock.

Bharti Hexacom shares were trading flat at Rs 901.35 at 10:39 am on Wednesday.

Bharti Hexacom Q4FY24 conso QoQ

The telecom operator's profit after tax (PAT) jumped by 4.6 per cent to Rs 223 crore in Q4 compared to Rs 213 crore in the previous quarter. 

Revenue from operations was up by 3.7 per cent to Rs 1,868 crore in the fourth quarter against Rs 1,801 crore in the third quarter.

Bharti Hexacom's EBIDTA jumped by six per cent to Rs 878 crore in Q4 against Rs 828 crore quarter-on-quarter (QoQ).

The telecom operator's margin rose to 47 per cent in the quarter under review compared to 45.9 per cent in the previous quarter. 

It has also declared a final dividend of Rs 4/share. 

Its ARPU rose to Rs 189 in Q4 from Rs 204 Year-on-Year (YoY)  

In the fourth quarter, it also added 16,000 new domestic and business customers. 

Jefferies on Bharti Hexacom (CMP 900)

Jefferies has maintained a 'buy' call on the firm, raising its target to Rs 1,200 from Rs 1,080.

The brokerage says that the company is a strong growth story unfolding.

Its Q4 revenue was up by 8 per cent (YoY), EBITDA was higher by 14 per cent YoY, and profits soared by 10 per cent YoY. The were all ahead of brokerage estimates.

Higher-than-estimate-subscriber additions, ARPU, and incremental EBITDA margin surprised positively.

Jefferies raised its estimates by up to nine per cent.

The brokerage expects Hexacom to deliver 17 per cent/23 per cent/77 per cent CAGR in revenue/EBITDA and profit over FY24-27.

Bharti Hexacom is the best way to invest in improving telecom tariffs in India, says Jefferies.