Small but Mighty: Bharti Hexacom's Success Story

Bharti Hexacom, a Bharti Airtel subsidiary, has been drawing attention for its high growth prospects in wireless and broadband services. Motilal Oswal has initiated coverage with a 'buy' rating and a target price of ₹1,625, citing Hexacom's strengths over Bharti Airtel in terms of reduced capital misallocation risks and greater growth prospects in its operating areas. Hexacom is present in Rajasthan and North East India, where internet penetration is below the national average, offering a strong growth runway. The firm has recorded high market share gains and ARPU expansion, supported by its premiumization strategy. Although trading at a premium to Airtel's India business, Hexacom's stock has remained resilient, indicative of its potential as a preferred bet on India's wireless growth story.

 

Source: Economic Times, CNBC TV18