Bharti Hexacom (BHARTIHEXA)

FairStock Score: 63/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Let me look at Bharti Hexacom as a business first. It earns a strong 29.58% return on equity and 17.44% return on capital employed, with sales up 13.56% and profits up 40.64%. That kind of compounding is attractive. The Piotroski score of 8/9 tells me the earnings quality is genuine, and an Altman Z-Score of 4.11 suggests the balance sheet is not under distress, despite debt/equity of 1.24. Free cash flow of ₹2,242 Cr supports the story. This is a good franchise with 70% promoter holding and an entrenched position in its telecom circles. But I am a value investor, and price matters. At ₹1,558.25, the stock trades at 45.59 times earnings and 13.13 times book. That is not a bargain. The Graham number is only ₹373.61, implying a negative margin of safety of -330%. Even if I respect the DCF intrinsic value of ₹2,400.50, I cannot anchor on a model full of assumptions. The dividend yield of 0.62% is thin for patient capital. This is a fast grower with solid execution. If it can keep profit growth near 40% while maintaining high ROE, the P/E will come down, but the market is already banking on that. I need a cushion in price. At 45 times earnings, I am paying for perfection. I would rather wait for a lower entry point or a longer track record. Quality is there, but valuation leaves little room for error.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer