Is Bharti Hexacom Overvalued or Undervalued Right Now?
- August 31, 2026
- Posted by: Kunal Singla
- Category: Market
Bharti Hexacom CMP Rs 1,535.00 (31 Aug 2026), down 0.97%. PE 42.52 vs industry PE 65.38. ROE 24.19%. 52W range Rs 1,430.00 to Rs 1,955.60.
Quick Answer
Bharti Hexacom trades at a price to earnings ratio of 42.52, well below the industry average of 65.38, which points toward undervaluation on a simple multiple basis. The stock’s 24.19% return on equity and Rs 143.30 book value per share suggest the market may be underpricing the underlying business relative to peers. Whether Bharti Hexacom is overvalued or undervalued right now depends on whether that discount reflects a genuine risk the market has priced in or simply a lack of investor attention. On valuation multiples alone, the stock currently sits below what the broader sector is priced at.
Is Bharti Hexacom overvalued or undervalued right now is a question worth asking given how its price to earnings ratio compares with the rest of its sector. At the current market price of Rs 1,535.00, the stock trades roughly 21.5% below its 52 week high of Rs 1,955.60 and about 7.3% above its 52 week low of Rs 1,430.00.
Bharti Hexacom’s share price moved down 0.97% in Monday’s session to Rs 1,535.00, against a market capitalisation of Rs 77,550 Cr. This article looks at the numbers, the PE ratio, price to book, return on equity, debt levels and recent earnings trends, that determine whether the current price reflects fair value or a stretched multiple.
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Bharti Hexacom Valuation Metrics: Where Does the Stock Stand?
| Valuation Metric | Bharti Hexacom |
|---|---|
| CMP (31 Aug 2026) | Rs 1,535.00 |
| Market Cap | Rs 77,550 Cr |
| P/E Ratio | 42.52 |
| Industry P/E | 65.38 |
| P/B Ratio | 10.82 |
| Return on Equity (ROE) | 24.19% |
| EPS (TTM) | Rs 36.48 |
| Book Value per Share | Rs 143.30 |
| Debt to Equity | 0.86 |
| Dividend Yield | 1.81% |
| 52 Week High / Low | Rs 1,955.60 / Rs 1,430.00 |
The headline number here is the price to earnings ratio. At 42.52, the Bharti Hexacom PE ratio is 0.65 times the industry average of 65.38, one of the narrower valuations in its sector. Its price to book ratio of 10.82 and return on equity of 24.19% round out the picture of how the market is pricing the stock relative to the business it is buying into.
Is Bharti Hexacom Overvalued Based on Its P/E Ratio?
Based on the P/E ratio alone, Bharti Hexacom looks undervalued. The stock’s PE of 42.52 sits well below the industry average of 65.38, which can reflect either a genuine bargain or a market discounting some risk in the business that is not obvious from the ratio itself. Investors relying only on the PE ratio would classify Bharti Hexacom as cheaper than its peers, but the Bharti Hexacom PE ratio still needs to be read alongside its return ratios and earnings quality before concluding the stock is a genuine value opportunity.
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Bharti Hexacom’s Financial Growth and Profitability
Detailed multi-year revenue and profit figures were not available for Bharti Hexacom at the time of writing, so this section relies on the metrics that are confirmed: a return on equity of 24.19%, an EPS of Rs 36.48, and a book value of Rs 143.30 per share. Readers should treat the valuation call here as based on current ratios rather than a multi-year earnings trend.
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Arguments That Bharti Hexacom Could Be Overvalued
- High price to book: A P/B of 10.82 means the market is paying several times book value of Rs 143.30 per share.
- Limited margin of safety: At Rs 1,535.00, the stock is only 21.5% below its 52 week high of Rs 1,955.60, leaving less room for error if earnings disappoint.
Arguments Against a Discount
- High return on equity: ROE of 24.19% reflects efficient use of shareholder capital.
- Reasonable income: A dividend yield of 1.81% offers some cushion while the market decides on the growth story.
- 52 week range context: At Rs 1,535.00, the stock is 7.3% above its 52 week low of Rs 1,430.00, showing it has already found some support at lower levels.
Verdict: Is Bharti Hexacom Overvalued or Undervalued Right Now?
On balance, Bharti Hexacom looks undervalued by traditional multiples, trading at a PE of 42.52 against an industry average of 65.38. That gap can close either through the share price catching up or through the business underperforming enough to justify the discount, so the read depends on which explanation fits the company’s recent earnings trend better. A 24.19% ROE is a reasonable starting point for that judgement, but investors should weigh why the market has kept the stock at a discount before treating the gap as a straightforward opportunity.
What Could Change This Valuation Picture for Bharti Hexacom?
Two broad scenarios could shift this valuation call on Bharti Hexacom in either direction. On the upside, the market recognising the gap between the PE of 42.52 and the industry average of 65.38, which would show up as the share price re-rating higher without a change in earnings. On the downside, a genuine deterioration in the business that justifies the current discount, in which case the low PE would turn out to be a fair reflection of risk rather than a bargain. Investors watching the Bharti Hexacom share price over the next few quarters should track whether reported ROE holds near 24.19% and whether the PE gap versus the industry average of 65.38 widens or narrows, since both will matter more to the eventual answer than the current price point on its own.
Conclusion
Bharti Hexacom’s numbers point to a stock that is undervalued on headline multiples, though its return ratios help explain part of the gap. Investors tracking the Bharti Hexacom share price should watch whether earnings growth can keep pace with the current PE of 42.52, since that gap remains the single biggest variable in whether the stock is undervalued, fairly priced, or overvalued from here. This article is for informational purposes only and is not investment advice.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
FAQs on Bharti Hexacom Valuation
Is Bharti Hexacom overvalued or undervalued right now?
Ans. Based on a PE ratio of 42.52 against an industry average of 65.38, Bharti Hexacom currently looks undervalued on relative valuation. Its 24.19% ROE is an important part of the picture alongside the PE ratio.
What is Bharti Hexacom’s current PE ratio?
Ans. Bharti Hexacom’s price to earnings ratio stands at 42.52, compared with an industry average PE of 65.38.
What is Bharti Hexacom’s return on equity?
Ans. Bharti Hexacom generates a return on equity of 24.19%., reflecting how efficiently the company uses shareholder capital.
What is Bharti Hexacom’s 52 week high and low?
Ans. Bharti Hexacom’s 52 week high is Rs 1,955.60 and its 52 week low is Rs 1,430.00. The stock currently trades around Rs 1,535.00, roughly 21.5% below its high.
Does Bharti Hexacom have high debt?
Ans. Bharti Hexacom carries a debt to equity ratio of 0.86, which is moderate for its sector.
What is Bharti Hexacom’s dividend yield?
Ans. Bharti Hexacom offers a dividend yield of 1.81% at the current share price.
Is Bharti Hexacom a good stock to buy at current levels?
Ans. Bharti Hexacom’s current valuation suits investors who agree with the undervalued read on its PE ratio and are comfortable with the trade-off between its return ratios and its price. This is for informational purposes only and is not investment advice.
What is Bharti Hexacom’s price to book ratio?
Ans. Bharti Hexacom trades at a price to book ratio of 10.82, against a book value of Rs 143.30 per share.
