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Bharti Hexacom
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Bharti Hexacom Ltd is a subsidiary company of Bharti Airtel Ltd. The company provides Cellular Mobile Telephony Services in the circles of North East and Rajasthan. They also offer cellular mobile, broadband, and telephone services. TCIL, a public sector undertaking firm holds 30% stake in the company.
Bharti Hexacom Ltd was incorporated as a joint venture company in the year 1995 under the name Hexacom India Ltd to enter cellular services for diversifying their operations. They provided Cellular Mobile Telephony Services in the circles of North East and Rajasthan, pursuant to licenses granted by the Department of Telecommunications, Government of India, on December 12, 1995 and December 19, 1995.
In December 2003, Bharti Airtel Ltd entered into an agreement with Telesystem (Mauritius) Pvt Ltd, Mauritius, a subsidiary of Telesystem International Wireless Inc, Canada, for buying their equity interest in the company for a consideration of $22.5 million.
In May 7, 2004, Bharti Airtel Ltd (formerly known as Bharti Tele-Ventures Ltd) acquired majority shareholding (67.5%) of the company a consideration of Rs 431.07 crore. In October 2004, Bharti Airtel Ltd further acquired 1% equity stake from Fouad M T Al Ghanim Trading & Cont Co Kuwait. With the acquisition of this additional 1% stake, the total holding of Bharti Airtel Ltd in the company has increased to 68.5%. In December 2004, the company changed their name from Hexacom India Ltd to Bharti Hexacom Ltd.
During the year 2004-05, the company expanded their network in the existing cities and roller-out in 174 new towns and coverage is available in 230 towns A new switch was installed and the HLR capacity was increased from 310 K to 900 K with an addition of 270 BTS. They also launched value added services such as 'Ring back tones', GPRS, MMS for enhancement of 'VAS' offerings and revenues.
During the year, the company commenced state-of-the-art call centre and initiated various programmes for customer benefit. In March 30, 2005, the company, which holds a Cellular Mobile Service Provider License, launched their commercial operations in North-East Circle.
The company migrated their Cellular Mobile Service Provider License to Unified Access Service Licence in the telecom circle of Rajasthan with effect from April 10, 2006. In September 14, 2006, Bharti Airtel Ltd acquired 43,750,000 equity shares of the company for a consideration of Rs 57.50 crore thereby increasing their stake from 68.5% to 68.89%.
During the year 2007-08, the subscriber base for the company in Rajasthan increased by 112% from 1,800,356 to 3,815,628 and in North-East Circle by 76% from 274,044 to 481,499. The subscriber base for voice services increased by 75% from 11,866 to 20,766 and for DSL services has increased by 149% from 3,659 to 9,115.
In February 2009, Bharti Airtel Ltd, the holding company acquired 1.11 per cent stake, or 2,780,306 equity shares, in Bharti Hexacom Ltd from Mobile Telecommunications Co KSC, Kuwait. With this acquisition, Bharti Airtel Ltd shareholding in the company stands higher at 70% from 68.89%.
The company and Bharti Airtel Ltd have entered into a scheme of arrangement for transfer pursuant to de-merger of North East Circle Undertaking from the company to Bharti Airtel Ltd with effect from April 1, 2005, which was approved by the board. The company is in the process of filing the approved scheme in the High Court.
In August 2009, the Government of India has finally approved state-run TCIL's (Telecommunications Consultants India) exit from the company, which is a joint venture with Bharti Airtel Ltd. TCIL decides to sell their 30% in the company to raise funds to be utilized for the purpose of expansion of the telecom.
Bharti Hexacom share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Bharti Hexacom indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Bharti Hexacom is valued compared to its competitors.
Bharti Hexacom PE ratio helps investors understand what is the market value of each stock compared to Bharti Hexacom 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Bharti Hexacom evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Bharti Hexacom generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Bharti Hexacom in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Bharti Hexacom shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Bharti Hexacom compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Bharti Hexacom over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Bharti Hexacom helps investors get an insight into when they can enter or exit the stock. Key components of Bharti Hexacom Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Bharti Hexacom shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Bharti Hexacom ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Bharti Hexacom provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Bharti Hexacom highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Bharti Hexacom .
The balance sheet presents a snapshot of Bharti Hexacom ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.