Bharti Hexacom Ltd.
ISIN: INE343G01021 • Market Cap: ₹79,950 Cr
The 5-Pillar Quality Audit for Bharti Hexacom Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (52.6%), Return on Capital Employed (23.9%), and equity compounding (24.2%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.38 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (10.6%) and 3Y PAT CAGR (53.5%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 43.83 vs PEG of 3.32 and Dividend Yield of 1.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 70.0%, backed by 14.2% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 23.9%)
Bharti Hexacom Ltd. generates exceptional return on capital employed of 23.9%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 24.2%)
Shareholder equity compounds at a healthy 24.2%, exceeding average Indian equity benchmarks.
High-Velocity Profit Compounding (3Y PAT CAGR: 53.5%)
Net earnings have compounded at 53.5% annualized, demonstrating operating leverage.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Telecommunication)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Telecommunication space.
Quantitative Strategy Eligibility
Checking BHARTIHEXA against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 79/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Telecommunication Sector Peer Comparison
Compare BHARTIHEXA directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Bharti Hexacom Ltd. (BHARTIHEXA)Current | 79/100 | ₹79,950 Cr | 43.83 | 23.9% | 0.38 | — |
| Vodafone Idea Ltd. (IDEA) | 65/100 | ₹1.52 Lakh Cr | 4.07 | -1.7% | -4.18 | View |
| Indus Towers Ltd. (INDUSTOWER) | 76/100 | ₹97,876 Cr | 13.68 | 18.4% | 0.02 | View |
| Tata Communications Ltd. (TATACOMM) | 59/100 | ₹47,330 Cr | 50.04 | 17.0% | 3.14 | View |
| HFCL Ltd. (HFCL) | 62/100 | ₹34,668 Cr | 60.55 | 8.6% | 0.37 | View |
| Sterlite Technologies Ltd. (STLTECH) | 62/100 | ₹31,629 Cr | 130.16 | 8.9% | 0.86 | View |
Frequently Asked Questions: Bharti Hexacom Ltd.
Q:What is the 5-Pillar Fundamental Score for Bharti Hexacom Ltd. (BHARTIHEXA)?
Bharti Hexacom Ltd. has a RupeeTools Fundamental Score of 79/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (92/100), Financial Health (83/100), Growth (85/100), Valuation (48/100), and Ownership Quality (72/100).
Q:Is BHARTIHEXA fundamentally strong for long-term investment?
Yes, BHARTIHEXA exhibits solid fundamental strength with a 79/100 score, driven by a return on equity of 24.2% and a debt-to-equity ratio of 0.38.
Q:Does BHARTIHEXA pass the Coffee Can Investing filter?
Yes! BHARTIHEXA satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does BHARTIHEXA compare against other Telecommunication peers?
Within India's Telecommunication sector, BHARTIHEXA trades at a P/E of 43.83 and generates an ROCE of 23.9%. Compare its 5-Pillar score of 79/100 against top sector peers like Vodafone Idea Ltd. (65/100), Indus Towers Ltd. (76/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.