Investing in this IPO could nearly double your money in one year

Shares of Bharti Hexacom, a subsidiary of Bharti Airtel, surged over 8% today after global brokerage firm Jefferies initiated coverage on the stock with a ‘Buy’ rating and set a price target of ₹1,080. This rating comes on the heels of Bharti Hexacom’s debut on the bourses on April 12 at a 32% premium to its issue price of ₹570. The stock closed at ₹807.30 apiece on the NSE on April 15, showing strong investor interest.

Bharti Hexacom, a communications solutions provider offering services in Rajasthan and the North East telecommunication circles, is being touted as a top play on the Indian telecom sector by Jefferies. The brokerage firm forecasts a 16% revenue CAGR between financial years 2024-2027 and a 21% EBITDA CAGR over the same period. Additionally, a projected 40% CAGR in free cash flow (FCF) is anticipated, supported by strong cash generation that could lead to a significant reduction in debt by FY27.

In light of these favorable projections, Jefferies has set a price target of ₹1,080 for Bharti Hexacom, signaling a potential upside of 34% from the current levels. This target is the highest on the street and reflects the firm’s confidence in the company’s growth prospects. JM Financial has also initiated coverage on Bharti Hexacom with a ‘Buy’ rating and a price target of ₹790 per share, citing the company’s position as a midcap pure-play on the structural wireless ARPU growth story.

Investors are now closely watching Bharti Hexacom as it continues to attract attention from analysts and stakeholders alike for its promising outlook in the competitive telecom sector.