Bharti Hexa: Airtel in tiny pack

Cash call

- Manish Joshi

Investors in Bharti Hexacom Ltd stock must be a happier lot vis-à-vis their counterparts in Bharti Airtel Ltd, the parent holding a 70% stake in the former. Hexacom's shares have gained as much as 66% since its listing day's closing price of ₹813.30 apiece on 12 April 2024. In comparison, the gains in Airtel's shares over the same period stand at about half of that (up 34%).

Both Bharti Airtel and Bharti Hexacom operate using the Airtel brand. Hexacom operates mobile and landline services in Rajasthan and North-East circles. Now, there are two key factors why many brokerages, including Motilal Oswal Financial Services that has recently initiated coverage on the stock, have a positive view on Hexacom. First, it remains a pure play in the Indian telecom industry unlike Bharti Airtel, which has a global presence. Second, lower capital misallocation concerns.