6 months ago
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The shares of Bharti Hexacom jumped 12% after a strong debut on the exchanges on Friday. The stock listed trades at Rs 848 apiece, up 49% over the issue price of Rs 570.
The enthusiastic listing was expected after it received an overwhelming response, as the issue was subscribed to a whopping almost 30 times.
The qualified institutional investors (QIB) led the pack, subscribing 48.57 times their allocation. Non-institutional investors followed closely, buying 10.52 times their portion, while retail investors showed strong interest by subscribing 2.83 times the reserved portion.
Furthermore, Bharti Hexacom’s anchor book showcases top global investors such as Capital Group, Fidelity, Blackrock, and ADIA participating which gives all other investors more comfort to block money for the long term.
Bharti Hexacom is a communications solutions provider offering consumer mobile services, fixed-line telephone, and broadband services to customers in the Rajasthan and the North East telecommunication circles in India, which comprises the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura.
Should you buy, sell, or hold Bharti Hexacom stock? Here's what analysts say:
JM Financial
JM Financial initiated coverage on Bharti Hexacom with a Buy rating and a target price of Rs 790/share based on 10x FY26 EV/EBITDA (in line with Bharti Airtel’s India wireless business at CMP), implying ~39% upside in a year at the upper band of its IPO price band.
"The stock could potentially double in 3-4 years on the back of a 15-17% EBITDA compounding story. Due to 2-3% higher EBITDA growth potential, BHL can command a slightly higher multiple than implied valuation of 10x FY26 EV/EBITDA for Bharti Airtel’s India wireless business," it said.
Shivani Nyati, Head of Wealth, Swastika Investmart
Bharti Hexacom, the subsidiary of Bharti Airtel, defied pre-listing predictions of a modest debut and delivered a strong performance on the exchanges. This impressive listing surpasses pre-listing expectations, tempered by concerns about the company's financial performance and valuation.
"While the listing exceeded expectations, the pre-identified risks remain relevant. Existing investors may consider holding their shares, while new investors should closely monitor the company's performance and market conditions before making a fresh entry," said Nyati.
Prashanth Tapse, Senior VP (Research), Mehta Equities
"Considering all the parameters we recommend allotted investors to “HOLD” the Bharti Hexacom for long-term perspective only, while those investors who wish to add on the listing days can wait and watch the space post listing performance and accumulate on dips," Tapse said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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