Bharti Hexacom shares surge over 9% after JPMorgan initiates Overweight rating, predicts 20% upside
Bharti Hexacom surged over 9% to Rs 1,165 on Tuesday after JPMorgan initiated coverage with an 'Overweight' rating and a target price of Rs 1,280, suggesting a 20% upside from the previous day's close. The brokerage views Bharti Hexacom as a top player in India's market repair segment.
Shares of surged over 9% to a day's high of Rs 1,165 in Tuesday's trade on BSE after the global brokerage firm JPMorgan initiated an 'Overweight' rating on the stock with a target price of Rs 1,280, indicating an upside potential of 20% from the previous day's closing price of Rs 1,065 apiece.The global brokerage believes the company is the best India market repair pure-play. They expect tariff repair to drive a 20% compound annual growth rate (CAGR) and higher underlying returns, while stronger than peer average revenue per user (ARPU) and subscriber growth provide tailwinds.
JPMorgan also stated that the best India telecom repair pure-play deserves a premium.
At 10:00 am, the scrip was trading 5.6% higher at Rs 1,122 on BSE. Meanwhile, in the last three months, the stock has surged 25%, compared to the benchmark Sensex, which surged 11% in the same period.
Technically, the relative strength index (RSI) of the stock is currently at 48.4. An RSI below 30 is considered oversold, while an RSI above 70 is considered overbought, according to Trendlyne data. Additionally, the Moving Average Convergence Divergence (MACD) is at 14.8, which is above its center line, but below the signal line.
Moreover, Bharti Hexacom's stock price is higher than the 5-day, 10-day, 20-day, 30-day, and 50-day simple moving averages (SMAs).
Bharti Hexacom listed on the exchanges on April 12, 2024, at a premium of 32.45%. The stock debuted at Rs 755 on the exchanges as compared to the offer price of Rs 570.
Bharti Hexacom is a communications solutions provider offering consumer mobile services,fixed-line telephone, and broadband services to customers in the Rajasthan and the North East telecommunication circles in India, which comprises the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura.
The company has a spectrum portfolio with a varied pool of mid-band spectrum, which has enabled it to offer 5G plus services to customers.
Sunil Mittal-driven telco holds a 70% stake or 35 crore shares in the company.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Source: Stocks-Markets-Economic Times
