Bharti Hexacom shares in Friday's session scaled as much as 5% at day's high to Rs 1,233.5  after yielding multi-bagger returns to its investors. The global brokerage Citi has initiated buy on the stock for a target of Rs 1,405, implying gains of close to 20 per cent from the last close.

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At the last count, shares of the telecom services company traded higher by 4.8 per cent higher at Rs 1,230 per share on the BSE.

The brokerage said that the company is an attractive midcap telco with strong growth outlook.
 
Additional, the firm is a pure-play regional telecom operator with healthy balance sheet.
 
Primarily, the brokerage has put its bet on the stock with a 'buy' rating as it is positive on the country's telecom sector. The brokerage sees improved likelihood of future tariff hikes, signs of waning competitive intensity
The stock has outperformed meaningfully following its April 2024 listing. 
 
Citi foresees stronger growth outlook, robust balance sheet, and superior return ratios versus peers in case of Hexacom.
 

Hexacom's share price performance

The stock since its listing has given 106% return since its listing on April 12 as against the IPO issue price of Rs 570.

 

About the company

 
Bharti Hexacom Limited is a communications solutions provider offering consumer mobile services, fixed-line telephone, broadband services, and digital services under the brand Airtel. Its segments include Mobile Services (voice and data telecom services, intra-city fiber networks) and Homes and Office Services (voice and data communications through fixed-line network, broadband technology). It also offers digital services such as Airtel Payments Bank, Airtel Xstream, Airtel Thanks, Airtel Wynk (music streaming), and Direct-to-Home (Digital TV). The company's m-cap last stood at Rs 61,500 crore.