Bharti Hexacom Ltd is Rated Sell

Current Rating and Its Implications

MarketsMOJO’s current 'Sell' rating on Bharti Hexacom Ltd indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new purchases at this time. This recommendation is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the stock’s attractiveness and risk profile in the current market environment.

Quality Assessment

As of 24 January 2026, Bharti Hexacom Ltd maintains a good quality grade. This reflects the company’s solid operational performance and robust return metrics. Notably, the company’s Return on Capital Employed (ROCE) stands at an impressive 20.3%, signalling efficient use of capital to generate profits. Such a high ROCE is a positive indicator of management effectiveness and business sustainability, which typically supports investor confidence over the long term.

Valuation Considerations

Despite the strong quality metrics, the stock is currently rated as very expensive in terms of valuation. The Enterprise Value to Capital Employed (EV/CE) ratio is 7, which is elevated relative to historical averages and peer valuations. This suggests that the market is pricing in significant growth expectations, which may limit upside potential if those expectations are not met. Investors should be mindful that paying a premium valuation increases the risk of price corrections, especially if earnings momentum slows.

Financial Trend and Profitability

The financial trend for Bharti Hexacom Ltd remains positive. The latest data as of 24 January 2026 shows that the company’s profits have surged by 76% over the past year, a remarkable growth rate that underpins the stock’s strong one-year return of 22.76%. Additionally, the Price/Earnings to Growth (PEG) ratio stands at 0.7, indicating that the stock’s price growth is reasonably aligned with its earnings growth, which can be attractive for growth-oriented investors. However, shorter-term returns have been mixed, with the stock declining by 10.57% over the past month and 11.30% year-to-date, reflecting some near-term volatility.

Technical Analysis

From a technical perspective, Bharti Hexacom Ltd is currently graded as mildly bearish. The stock’s price movement has shown weakness in recent weeks, with a 0.62% decline on the latest trading day and a near flat performance over the past week. This mild bearishness suggests that momentum indicators and chart patterns may be signalling caution, potentially reflecting investor uncertainty or profit-taking after recent gains. Technical factors often influence short-term trading decisions and can impact the timing of entry or exit points for investors.

Stock Returns Overview

As of 24 January 2026, the stock’s returns present a mixed picture. While the one-year return is a healthy 22.76%, shorter-term performance has been less encouraging. The stock has declined by 10.78% over six months and 9.39% over three months, indicating some recent pressure. Year-to-date, the stock is down 11.30%, which may reflect broader market volatility or sector-specific challenges. These return patterns highlight the importance of considering both long-term fundamentals and short-term market dynamics when evaluating the stock.

Sector and Market Context

Bharti Hexacom Ltd operates within the Telecom - Services sector and is classified as a midcap company. The telecom sector has been undergoing rapid technological changes and competitive pressures, which can affect earnings visibility and valuation multiples. Investors should weigh these sector-specific factors alongside company fundamentals when making investment decisions.

What the 'Sell' Rating Means for Investors

The 'Sell' rating on Bharti Hexacom Ltd advises investors to exercise caution. While the company demonstrates strong quality and positive financial trends, the elevated valuation and mild technical weakness suggest limited upside and potential downside risk in the near term. Investors holding the stock may consider reviewing their positions, particularly if they are sensitive to valuation risks or short-term volatility. New investors might prefer to wait for a more attractive entry point, possibly when valuation metrics become more favourable or technical indicators improve.

Summary and Outlook

In summary, Bharti Hexacom Ltd’s current 'Sell' rating reflects a balanced view that recognises the company’s operational strengths and profit growth but also highlights concerns over valuation and recent price momentum. The stock’s strong ROCE and profit expansion are positives, yet the very expensive valuation and mildly bearish technical signals temper enthusiasm. Investors should closely monitor upcoming earnings releases, sector developments, and market conditions to reassess the stock’s outlook. Maintaining a disciplined approach aligned with individual risk tolerance and investment horizon remains essential.

Key Metrics at a Glance (As of 24 January 2026)

• Mojo Score: 48.0 (Sell Grade)


• ROCE: 20.3%


• Enterprise Value to Capital Employed: 7


• Profit Growth (1 Year): +76%


• PEG Ratio: 0.7


• Stock Returns: 1Y +22.76%, 6M -10.78%, 1M -10.57%, YTD -11.30%


• Technical Grade: Mildly Bearish


• Valuation Grade: Very Expensive


• Quality Grade: Good


• Financial Grade: Positive

Investors should consider these factors comprehensively when evaluating Bharti Hexacom Ltd as part of their portfolio strategy.

Unlock special upgrade rates for a limited period. Start Saving Now →