Bharti Hexacom best play on Indian telcos' tariff hikes, Jefferies says

Bharti Hexacom

13/09/2024 05:45

** Bharti Hexacom  BHAX.NS  is the best play on the telecom
sector's tariff hikes, Jefferies says
    ** Upgrades to 'buy' from 'hold' rating, raises PT to 1,600
rupees from 1,260 rupees
    ** Says Reliance Industry  RELI.NS -owned Jio's rising focus
on growth and Vodafone Idea  VODA.NS 's market share losses may
lead to multiple tariff hikes over next few years
    ** Raises BHAX's FY26-27 revenue estimates by 5-7% to
include a 10% tariff hike in mid-FY26 and another 10% in Q2 of
FY27
    ** Expects co to deliver 19% CAGRs in rev and 25% in EBITDA
over FY24-27
    ** Says co's faster growth will keep valuations at premium
to Bharti Airtel  BRTI.NS 's India ops
    ** BHAX was last up 12%, a record high

 (Reporting by Aleef Jahan in Bengaluru)
 ((aleefjahan.cs@thomsonreuters.com))