India's Bharti Hexacom to snap 4-day losing streak after Investec initiates coverage

Bharti Hexacom

12/07/2024 07:25

** Shares of Bharti Hexacom  BHAX.NS  rise as much as 3.82%
to 1087.60 rupees
    ** Stock on course to snap four-session losing streak if
gains hold
    ** Investec initiates coverage of stock with "buy"
recommendation and target price of 1,274 rupees, a 21% premium
to last close
    ** Telecom firm BHAX operates in seven Indian states under
parent Bharti Airtel  BRTI.NS  
    ** BHAX better choice in Indian telecom sector compared with
parent Bharti Airtel, which we view as an amalgamation of
multiple businesses with different growth characteristics -
Investec 
    ** Adds "tariff hikes will likely be an annual affair going
forward and BHAX proves a higher indexation to India mobile
business"
    ** Also terms co the "least leveraged" with debt to EBITDA
ratio at 1.4x vs about 2x for peers
    ** Investec also sees total return of ~16% over 12-months
for BHAX
    ** Investec retains "hold" on Bharti Airtel, but raises
target price to 1,560 rupees from 971 rupees
    ** BRTI up 0.2% on the day - LSEG data

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))