CLSA Downgrades Bharti Hexacom to ‘Underperform’ with Rs 1,525 Target Price

CLSA has downgraded

xacom to an ‘underperform’ rating, setting a target price of Rs 1,525, citing underwhelming financial performance in the first quarter. The telecom operator’s Q1 revenue fell short of analyst estimates, raising concerns about its near-term growth prospects. Despite the revenue shortfall, Bharti Hexacom reported a 2% quarter-on-quarter (QoQ) and 20% year-on-year (YoY) increase in its average revenue per user (ARPU), reaching Rs 246. This growth in ARPU reflects the company’s ability to improve monetization, though it was not enough to offset the overall revenue miss. On a positive note, Bharti Hexacom achieved its highest-ever quarterly addition of broadband subscribers, adding 54,000 homes to its network. This milestone underscores the company’s growing footprint in the broadband segment, which continues to gain traction amid rising demand for high-speed internet. However, the company’s EBITDA also disappointed, coming in below expectations. The combination of weaker-than-anticipated revenue and EBITDA has prompted CLSA to adopt a cautious stance on Bharti Hexacom’s stock, reflected in the downgrade and modest target price. Investors will likely keep a close eye on xacom’s ability to sustain its ARPU growth and capitalize on its broadband expansion to drive future performance.