Bharti Hexacom Ltd.
NSE: BHARTIHEXABharti Hexacom Ltd.: A 30-second snapshot
Bharti Hexacom is a Rajasthan- and Northeast-focused telecom operator, majority-owned by Bharti Airtel. At ₹1,495.5, the stock trades 10.9% below its 200-DMA and is down 11.1% over the past 12 months, with a 26.75% drawdown from its 52-week high. FY 2026 showed record revenue and a reported final dividend, but the 5-year earnings CAGR of -4.7% and D/E of 85.65 are the dominant structural features.
P/E
43.6
Forward P/E
23.6
ROE
+26.5%
Debt / Equity
85.65
Profit Margin
+18.5%
Div. Yield
+0.7%
5Y ROE > 15%
2/5
5Y FCF > 0
4/5
Quality
54/100
News
3 headlines · 3 positive · 0 negative
BHARTIHEXA: Record revenue, robust EBITDA, and strategic digital investments drive strong FY 2026 performance - TradingView
TradingView
Bharti Hexacom Limited Approves Recommends Final Dividend for the financial year 2025-26 - marketscreener.com
marketscreener.com
Two Trades for Today: A telecom solutions provider for a rise of 5.6%, a mid-cap consumer durables stock f - The Economic Times
The Economic Times
Recent context
- ·FY 2026 full-year results showed record revenue and robust EBITDA per the May 2026 headline, with the board approving a final dividend for FY 2025-26, indicating sufficient distributable surplus.
- ·A named broker analysis cited in The Economic Times flagged the stock for a potential near-term rise of 5.6%, referencing it as a telecom solutions provider — though the stock was trading below both key moving averages at the time of that report.
- ·News sentiment across 3 articles was uniformly positive (3 positive, 0 negative), though the small sample size (total = 3) limits the reliability of this signal for broader market sentiment.
Strengths
- +Trailing ROE of 26.47% ranks 2nd among 6 telecom peers (behind Tata Communications at 31.13%), indicating competitive capital efficiency at the current earnings level.
- +Profit margin of 18.53% and FCF positive in 4 of available years suggest the operating model generates cash, with management guiding a falling debt trend.
- +Forward PE of 23.58 is meaningfully below the trailing PE of 43.64, reflecting analyst expectations of earnings growth that would compress the multiple.
- +Debt trend is classified as falling, and the consistency score of 78 on earnings persistence (despite only 2 years of ROE above 15%) suggests improving structural trajectory.
Weaknesses
- −D/E of 85.65 is substantially above the telecom peer median and represents the primary leverage risk; even a moderate rise in financing costs or a revenue shortfall could pressure debt-service capacity.
- −5-year earnings CAGR of -4.7% means cumulative earnings have declined over the past 5 years, contrasting sharply with the strong trailing ROE — the current-period profitability does not reflect a consistent historical pattern.
- −Quality score of 30 ranks 5th of 6 peers, with only TATACOMM (score 5) scoring lower in quality; Indus Towers leads the peer group at 64, indicating BHARTIHEXA sits in the lower half on composite quality metrics.
- −Price is below both the 50-DMA (₹1,532.44) and 200-DMA (₹1,677.93), with the stock down 9.57% over 3 months and 11.11% over 12 months — sustained price weakness relative to moving averages.
Open questions
- ?Does the falling debt-trend trajectory reflect a structural deleveraging plan, and over what time horizon does management project D/E to reach levels comparable to Bharti Airtel (85.65 vs the parent group)?
- ?Is the forward PE compression from 43.64 to 23.58 driven by consensus earnings-growth estimates that are consistent with the 5-year revenue CAGR of only 5.4%, or does it embed an acceleration assumption that lacks historical precedent?
- ?How much of the trailing ROE of 26.47% is attributable to financial leverage rather than operating margin expansion, and would that ROE level be sustained if the balance sheet were to delever materially?
- ?Given that Bharti Hexacom operates in geographically concentrated circles (Rajasthan and Northeast), how exposed is its revenue base to competitive intensity from Jio and Airtel in those specific regions compared to a national operator?
Peer comparison: Telecom
Ranks 5 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| BHARTIHEXA | Bharti Hexacom Ltd.You're viewing | 43.6 | +26.5% | 30 |
| Industry avg | across 5 peers | 28.5 | +19.4% | 35 |
| INDUSTOWER | Indus Towers Ltd. | 15.9 | +19.8% | 64 |
| IDEA | Vodafone Idea Ltd. | 4.3 | — | 41 |
| HFCL | HFCL Ltd. | — | +7.3% | 34 |
| BHARTIARTL | Bharti Airtel Ltd. | 40.7 | +19.4% | 32 |
| TATACOMM | Tata Communications Ltd. | 53.1 | +31.1% | 5 |
Technical state
Current price
₹1,495.50
SMA 50
₹1,532.44
SMA 200
₹1,677.93
RSI (14)
42.4 (neutral)
From 52w high
-26.8%
1Y return
-11.1%
3M return
-9.6%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 85.65 is extremely elevated for a non-bank telecom operator; even within a capital-intensive sector, this level of leverage constrains financial flexibility and amplifies downside in a rate or revenue-growth shock.
- mediumPrice of ₹1,495.5 is 2.4% below the 50-DMA (₹1,532.44) and 10.9% below the 200-DMA (₹1,677.93); the stock is down 11.11% over 12 months and 9.57% over 3 months, and sits 26.75% below its 52-week high — below the 200-DMA for an extended period.
- mediumROE has exceeded 15% in only 2 of the available historical years and 5-year earnings CAGR is -4.7%, suggesting the current trailing ROE of 26.47% has not been a durable baseline; quality score of 30 ranks 5th of 6 telecom peers.
- lowAnalyst rating field is null despite 13 analysts counted; all peer priceChange1Y values are null, leaving the sector price-performance ranking incomplete. News sample is only 3 articles, which is below the threshold for reliable sentiment inference.
Cross-section contradictions
- ROE of 26.47% (2nd of 6 peers) and profit margin of 18.53% indicate current-period profitability, yet the stock is down 11.11% over 12 months and 26.75% below its 52-week high — a divergence that may reflect market concerns about D/E of 85.65 or the negative 5-year earnings growth trajectory.
- Forward PE of 23.58 is 46% below the trailing PE of 43.64, implying a sharp expected earnings acceleration, yet the 5-year earnings CAGR stands at -4.7% — the gap between forward expectations and the historical trend is material.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days