Motilal Oswal downgrades India's Bharti Hexacom to "neutral" on valuation concerns; shares drop

Bharti Hexacom

06/06/2025 07:33

** Bharti Hexacom's BHAX.NS shares down 4.1% to 1,801 rupees; set for their worst-day in about 2 months

** Brokerage Motilal Oswal downgrades telco BHAX to "neutral" from "buy", PT unchanged at 1,900 rupees

** Says BHAX deserves to be valued above parent Bharti Airtel BRTI.NS, but a nearly 40% premium is unjustified

** BHAX rallied more than 40% since brokerage initiated coverage in March

** Risk-reward no longer attractive - Motilal Oswal

** BRTI shares trading flat at 1,879 rupees

** Despite the downgrade, brokerage says BHAX's growth prospects better than BRTI, given lower mobile, broadband penetration in its circles

** Avg rating from 10 analysts is "buy"; median PT 1,754.5 rupees - data compiled by LSEG

** Stock up 25% YTD

 (Reporting by Aleef Jahan in Bengaluru)

 ((aleefjahan.cs@thomsonreuters.com))