Tag Bharti Airtel

Bharti Hexacom Ltd
Bharti Hexacom Can Rally 22%- FinanceShastra Projects Strong Long-Term Growth & Initiates Buy Rating

Business and Industry Overview: 

Bharti Hexacom Ltd is a company that provides mobile and internet services. It is part of Bharti Airtel, which is a big telecom company in India. Bharti Hexacom works in Rajasthan and the Northeast. It helps people make calls, send messages, and use the internet. It gives 2G, 3 G, and 4G services. It helps Airtel grow in small towns and villages. Many people in these areas need better mobile and internet services. 

In 2024, Bharti Hexacom started selling shares to the public. This is called an IPO (Initial Public Offering). This means people can buy small parts of the company. When more people invest, the company gets money to grow. Bharti Hexacom makes good money because it uses Airtel’s strong network. Airtel is a trusted name, so many people use Bharti Hexacom’s services. 

The company wants to expand its network in the future. It wants to reach more people in more places. It also wants to bring 5G technology to its areas. Many people in Indiauseg mobile phones and the internet every day. The company wants to give them faster and better internet. It wants to improve its services so that everyone can stay connected easily. 

India has the second-largest telecom market in the world. As of May 2024, the total number of telephone subscribers was 1.2 billion, and the teledensity was 85.87%. The demand for 5G smartphones is rising, making India the second-largest market for 5G devices after China. India holds 13% of the global 5G smartphone market, while China leads with 32%. The smartphone market grew by 3% in volume and 12% in value in Q3 2024. Major telecom companies in India include Jio (474.61 million users), Airtel (387.76 million users), Vodafone Idea (218.15 million users), and BSNL (86.32 million users). The number of wired broadband users stood at 41.31 million in May 2024. Wireless broadband subscriptions reached 884.01 million in FY24. India’s internet subscribers grew to 936.16 million by April- December 2024. The country also saw over 28 billion mobile app downloads in 2022, accounting for 5% of the global total. The government is investing heavily in 5G infrastructure, with plans to fiberize telecom towers and deploy 1.2 million new towers. As of now, only 36% of towers are fiberized. The telecom sector’s gross revenue stood at Rs. 2.4 lakh crore (US$ 29 billion) in FY24. The government increased Foreign Direct Investment (FDI) from 74% to 100%, attracting US$ 39.32 billion in FDI between April 2000 and March 2024. The Bharat 6G Alliance is working with European telecom companies to develop 6G technology. Investments in data centers are also growing, with Rs. 2,000 crore (US$ 242.33 million) invested in Pune in May 2023. Companies like Jio, Airtel, and Google are making big investments in India’s digital growth. The government launched a Rs. 12,195 crore (US$ 1.65 billion) Production Linked Incentive (PLI) scheme, encouraging telecom equipment manufacturing.  

Latest Stock News: 

Bharti Hexacom is a company that provides mobile and internet services under the Airtel brand. It operates in Rajasthan and the Northeast. Experts like its shares more than those of its parent company, Bharti Airtel, because it has less risk and better growth opportunities. In these areas, fewer companies provide services, and internet use is low, so Bharti Hexacom can grow faster. Its share price started at ₹570 when it first sold shares (IPO price). It later went up to ₹1,600 but then dropped by 18%. Even after the drop, the share price is 134% higher than its starting price. Experts from Motilal Oswal believe the stock price can rise to ₹1,625, which is 22% more than now. The company makes more money per customer than many others. Its areas have less competition, which helps it earn more. Airtel’s chairman, Sunil Bharti Mittal, said Airtel might buy a company outside India, which could be risky. However, Bharti Hexacom is focused only on India, which makes it safer. The company is expected to grow fast in the next few years. 9 out of 12 experts say it is good to buy, 2 say hold, and 1 says sell. Bharti Hexacom is also expected to make 23% more profit every year from 2024 to 2027. Even though its stock dropped 0.7% today, experts still believe it will keep growing in the future. 

Potentials: 

Bharti Hexacom wants to grow bigger in the future. It will increase mobile and internet services in Rajasthan and the Northeast. These places have fewer internet users, so more people will start using data and broadband. This will help the company earn more money. It will also make its network better and increase internet speed. Experts believe the company will grow by 23% every year from 2024 to 2027. 

Bharti Hexacom wants more people to use its services. It will change non-internet users into internet users. It will also move prepaid customers to postpaid plans. The company will improve broadband services and offer better plans. This will help it make more money. 

Its parent company, Bharti Airtel, may buy a company outside India. However, Bharti Hexacom will only work in India. This makes it less risky and more stable. The company will face less competition because it is working in less crowded areas. Experts say that by the end of 2025, Bharti Hexacom will become the top company in Rajasthan and the Northeast. 

If mobile and broadband prices go up in the future, Bharti Hexacom will earn even more money. Experts think its share price will increase to ₹1,625, which is 22% more than now. Even though its share price dropped a little today, experts believe the company will keep growing. 

Analyst Insights: 

  • Market capitalisation: ₹ 68,500 Cr. 
  • Current Price:₹ 1,370 
  • 52-Week High/Low: ₹ 1,609 / 755 
  • Stock P/E: 65.2 
  • Dividend Yield: 0.29 % 
  • Return on Capital Employed (ROCE): 14.0 % 
  • Return on Equity: 14.0 % 

Bharti Hexacom is growing well. Its sales have increased by 14% every year in the last five years. The company’s profit has grown by 22% per year. It is making more money than before. Its profit margin improved from -2 % in 2019 to 47% in 2024. This means the company is earning more after paying costs. It also collects money from customers faster now. Earlier, it took 57.6 days, but now it takes only 22.9 days. 

However, the stock is very expensive. Its P/E ratio is 65.2, which is much higher than that of other companies. It is trading at 13.1 times its book value, which means investors are paying more for each share than its actual worth. The ROE is 14%, which is not very high. The company also has a high debt of ₹8,105 crore. It does not pay much dividend, as the yield is only 0.29%. 

Because of this, long-term investors can hold the stock as the company grows. But new investors should wait because the stock is costly now. 

Bharti Airtel
Bharti Airtel Q3 FY25 Results: Strong Net Profit Jumps 121% to ₹5,514 Cr, Revenue at ₹45,129 Cr, ARPU ₹245

Bharti Airtel Ltd: Overview 

Bharti Airtel Ltd. is one of India’s leading telecommunications service providers, with a robust presence in over 18 countries across South Asia and Africa. Established in 1995, the company has evolved into a diversified telecom player offering services that include mobile voice and data, broadband, fixed-line services, enterprise solutions, digital television, and financial services. Airtel has been at the forefront of India’s digital transformation, playing a pivotal role in expanding high-speed internet connectivity across urban and rural markets. The company operates one of the largest 4G and 5G networks in India, ensuring seamless connectivity for millions of users. Airtel’s business model is driven by a strong customer-first approach, supported by continuous investments in network expansion, digital innovations, and content partnerships. With a subscriber base of over 500 million, Airtel remains a formidable competitor in India’s telecom landscape. The Indian telecommunications industry is undergoing a rapid transformation, driven by technological advancements, increasing smartphone penetration, and the growing demand for high-speed data services. India has emerged as one of the world’s largest and fastest-growing telecom markets, with over 1.2 billion mobile subscribers and significant investments in next-generation technologies. The introduction of 5G services is set to redefine the telecom landscape, with Airtel leading the way in deployment. The government’s push for Digital India, coupled with initiatives like BharatNet, aims to improve broadband connectivity in rural areas, creating new opportunities for telecom operators. 

Latest Stock News 

As of December 31, 2024, the overall customer base stood at approximately 577 million across 15 countries, reflecting a year-on-year (YoY) growth of 4.7% compared to 551 million in the corresponding quarter last year. The company’s consolidated mobile data traffic surged by 24.2%, reaching 20,689 petabytes (PBs) during the quarter, compared to 16,656 PBs in the previous year. Total minutes of usage on the network grew by 6.8% to 1,385 billion, up from 1,297 billion in the same quarter last year. The smartphone customer base expanded to 270.2 million, recording an increase of 6.5 million quarter-on-quarter (QoQ) and 25.2 million YoY. The company’s capital expenditure for the quarter amounted to ₹91,608 million. In the Digital TV Services segment, the average revenue per user (ARPU) for the quarter stood at ₹160, slightly higher than ₹158 in the previous quarter, with net customer additions of 29,000. The Homes segment continued its expansion, with operations spanning 1,427 cities (including Local Cable Operators), witnessing a robust revenue growth of 18.7% YoY. Net customer additions in this segment totalled approximately 674,000 during the quarter, bringing the overall customer base to 9.2 million. 

Business Segments 

  • Mobile Services (India & South Asia): Airtel is the second-largest telecom operator in India, offering 2G, 4G, and 5G services to millions of customers. The company has a strong focus on ARPU (Average Revenue Per User) growth, driven by premiumization strategies such as higher 4G and 5G adoption, post-paid plan expansion, and bundled content services. Airtel’s “Airtel Black” strategy, which provides bundled mobile, broadband, and DTH services, has seen strong traction. 
  • Airtel Business (Enterprise Solutions): Airtel Business is one of India’s largest B2B telecom service providers, catering to corporates, government institutions, and small businesses. The segment offers cloud computing, cybersecurity, data center solutions, IoT connectivity, and managed services. Airtel has partnered with global technology firms like Google Cloud, AWS (Amazon Web Services), and Cisco to strengthen its enterprise offerings. 
  • Home Broadband & DTH Services: Airtel’s broadband segment has grown significantly under Airtel Xstream Fiber, offering high-speed fiber-optic internet across 1,200+ cities in India. The company has aggressively expanded its fiber network, targeting 40 million homes by 2025. With a focus on Wi-Fi 6 routers, mesh networking, and OTT content bundles, Airtel is enhancing user experience and driving customer retention. The DTH (Direct-to-Home) segment, offered through Airtel Digital TV, provides digital television services to millions of Indian households. 
  • Payments & Financial Services: Airtel operates Airtel Payments Bank, India’s first payments bank, which provides financial inclusion solutions such as digital wallets, UPI transactions, and micro-loans. The bank has witnessed strong growth, driven by an increasing number of digital transactions and rural banking initiatives. Airtel has also partnered with financial institutions to offer insurance, credit, and investment products through its digital platform. 

Subsidiary Information 

  • Airtel Africa: Airtel Africa is a major player in the African telecom market, operating in 14 countries, including Nigeria, Kenya, Uganda, and Tanzania. The subsidiary offers mobile voice, data, and financial services, catering to over 140 million customers. The company has been expanding mobile money services under Airtel Money, driving financial inclusion in underserved regions. 
  • Nxtra by Airtel: Nxtra by Airtel is the company’s data center subsidiary, providing cloud computing and colocation services. As India’s demand for data storage, AI-driven analytics, and cybersecurity solutions increases, Nxtra is expanding its green data centers across multiple locations. Airtel has committed significant investments in energy-efficient and AI-powered infrastructure, ensuring compliance with global data security standards. 
  • Airtel Payments Bank: Airtel Payments Bank operates as a financial inclusion initiative, offering digital wallets, micro-insurance, and payment solutions. The bank has a vast rural and urban customer base, benefiting from Airtel’s extensive network coverage. The increasing shift towards cashless transactions and government-backed financial inclusion programs makes Airtel Payments Bank a high-potential subsidiary. 

Q3 FY25 Earnings 

  • Revenue of ₹45129 crore in Q3 FY25 up by 19.08% YoY from ₹37900 crore in Q3 FY24.  
  • EBITDA of ₹24597 crore in this quarter at a margin of 54% compared to 52% in Q3 FY24. 
  • Profit of ₹16135 crore in this quarter compared to a ₹2876 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 37900 45129 139145 149982 
Expenses 18085 20533 67871 71691 
EBITDA 19815 24597 71274 78292 
OPM 52% 54% 51% 52% 
Other Income 1013 9675 1019 -3428 
Net Profit 2876 16135 12287 8558 
NPM 7.5% 35.7% 8.8% 5.7% 
EPS 4.3 25.9 14.9 13.2