If you invested in this IPO, your money could almost double in one year

Shares of Bharti Hexacom, a subsidiary of Bharti Airtel, rallied over 8% today (April 16) after global brokerage firm Jefferies initiated coverage on the stock with a 'Buy' rating and put a price target of ₹1,080. Citing strong growth outlook and healthy margin expansion, Jefferies put the price target on Bharti Hexacom which is the highest on the street. It implies a potential upside of 34% from the stock's closing levels on April 15.

Shares of Bharti Hexacom debuted on the bourses on April 12 at a 32% premium to its issue price of ₹570.

Bharti Hexacom is a communications solutions provider which offers services in Rajasthan and the North East telecommunication circles.

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Bharti Hexacom stock performance so far

Shares of Bharti Hexacom debuted on the bourses on April 12 at a 32% premium to its issue price of ₹570. The stock closed at ₹807.30 apiece on the NSE on April 15.

What Jefferies said on Bharti Hexacom?

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As per Jefferies, Bharti Hexacom is the best play on Indian telecom as the foreign brokerage expects a 16% revenue CAGR (compound annual growth rate) between financial year 2024 - 2027 and 21% EBITDA CAGR over FY24-27. It said tha the CAGR in revenue and EBITDA which coupled with moderation in capex would result in 40% CAGR in FCF. Bharti Hexacom's strong cash generation should drive deleveraging of ₹5,500 crore (14% of market capitalization) and help reduce net debt to EBITDA ratio to 0.4 times by FY27, it added.

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What JM Financial said on Bharti Hexacom?

JM Financial initiated coverage on Bharti Hexacom ahead of its stock market debut and assigned a ‘Buy’ rating with a price target of ₹790 per share. Bharti Hexacom Ltd is a midcap pure-play on structural wireless ARPU growth story, it said.

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