Bharti Hexacom zooms to all-time high after Jefferies double upgrades stock to 'buy'

Shares of the communications solutions provider Bharti Hexacom in Friday's session (September 13) zoomed nearly 13 per cent to all-time high as global brokerage Jefferies has double upgraded the stock to 'buy' from the earlier 'hold' call. The target on the stock has also been raised to Rs 1,600 from the earlier Rs 1,260 per share. The target price suggests a potential upside of over 24 per cent. 

In the previous session, the stock ended over 4 per cent higher at Rs 1,290 per share.

Since listing on April 12, 2024, the stock as against the IPO price of Rs 570, the stock has gained 126 per cent in just 5 months.

The brokerage said that the company is the best play on tariff hikes. 

Jefferies on the other players in the industry held that Jio's rising focus on growth and VIL's market share losses may need multiple tariff hikes over the next few years.

The brokerage has raised FY26/27 revenue/Ebitda estimates by 5-12 per cent. The brokerage expects 10 per cent tariff hike in mid-FY26 in addition to the 10 per cent hike it was modeling in Q2FY27.

The company is seen to draw continued benefit from better customer mix along with continuous increase in mobile data consumption.

Bharti Hexacom Q1FY25 results

In Q1, the company's PAT soared year-on-year (YoY) to Rs 511 crore, while the revenue from operations 13.61 per cent YoY to Rs 1,910.6 crore during the quarter.

EBITDA stood at Rs 912 crore in Q1 FY25, up 6.6 per cent as compared with Rs 855 crore in Q1 FY24. EBITDa margin contracted to 47.7 per cent in Q1 FY25 from 50.8 per cent Q1 FY24.