Shares in HFCL Limited rose 5% yesterday during trading to reach a 52-week high of Rs 115.70.
The rise in shares of the company comes after a major announcement. The Board of HFCL Limited approved the strategic expansion of the company in Europe.
The company will build a modern optical fiber cable manufacturing facility in Poland.
This will cost the company up to Rs144 billion. The initial capacity of the company will be 3,25 MFkm, with the potential to increase to 7 MFkm per year.
What Are The Details?
HFCL set up a fully owned subsidiary HFCL B.V. to establish this manufacturing facility in the Netherlands.
It Will establish a new step-down auxiliary unit. The plant will likely be built by February 2025, and an investment of Rs 144 Crores is required.
The company will use this unit to take advantage of the increasing demand for optical fibre cables in European countries such as Germany, Belgium, and France.
HFCL aims to increase its share of export revenue in the optical fibre cable (OFC), from 30% to 70%, in the next 4 to 5 years.
HFCL Order Book
The order book shows that domestic telecom equipment providers received orders worth Rs 179 crore on Tuesday from the state-run Bharat Nigam Limited (BSNL), for the supply of 4G and 5G network equipment.
The order book has increased from Rs 7064 Cr in Q3FY23 to Rs 7678 Cr in Q3FY24. The company claims that the order for 5G networking equipment will cost Rs 623 crore.
This was the company’s first order in this category.
Brokerage Opinion
A renowned expert in Equity Technical and Derivatives analysis said that the HFCL shares are in a bullish trend.
Another expert from a different brokerage house said that the charts show a technical bullish trend. Investors can therefore buy it at a stop-loss below Rs104 with a mid-term target of Rs140 to 150.
About HFCL Ltd
HFCL Ltd is a global technology company based in India. It is active in developing infrastructure, system integration, and manufacturing.
The company offers high-end products such as Optical Fiber and Optic Fiber Cable.
The company’s segments are Telecom Products (including Turnkey contracts and services), and Others.
The company’s products cables and optical fibers include micro cables and optic fiber.
Telecom equipment such as indoor-outdoor Wi-Fi 5, cloud-based network management system, etc. Electronics, such as electronic fuses and electro-optical devices.
Fundamental Analysis of HFCL Ltd
| Market Cap | ₹ 16,045 Cr. |
| Current Price | ₹ 112 |
| 52-wk High | ₹ 116 |
| 52-wk Low | 55.8 |
| Stock P/E | 55.0 |
| Book Value | ₹ 24.9 |
| Dividend | 0.18 % |
| ROCE | 15.2 % |
| ROE | 10.2 % |
| Face Value | ₹ 1.00 |
| P/B Value | 4.50 |
| OPM | 12.0 % |
| EPS | ₹ 2.08 |
| Debt | ₹ 896 Cr. |
| Debt to Equity | 0.25 |
HFCL Ltd Share Price Target 2024 To 2030
| Year | 1st Target | 2nd Target |
| 2024 | ₹115 | ₹185 |
| 2025 | ₹195 | ₹222 |
| 2026 | ₹232 | ₹248 |
| 2027 | ₹295 | ₹328 |
| 2028 | ₹345 | ₹365 |
| 2029 | ₹375 | ₹415 |
| 2030 | ₹431 | ₹495 |
HFCL Ltd Shareholding Pattern
| Promoters Holding | |
| Dec 2022 | 39.24% |
| Mar 2023 | 39.24% |
| June 2023 | 39.24% |
| Sept 2023 | 37.84% |
| Dec 2023 | 37.84% |
| FII Holding | |
| Dec 2022 | 6.52% |
| Mar 2023 | 6.77% |
| June 2023 | 7.53% |
| Sept 2023 | 8.35% |
| Dec 2023 | 8.18% |
| DII Holding | |
| Dec 2022 | 2.64% |
| Mar 2023 | 2.78% |
| June 2023 | 2.95% |
| Sept 2023 | 4.64% |
| Dec 2023 | 4.55% |
| Public Holding | |
| Dec 2022 | 51.49% |
| Mar 2023 | 51.12% |
| June 2023 | 50.19% |
| Sept 2023 | 49.09% |
| Dec 2023 | 49.37% |
| Others Holding | |
| Dec 2022 | 0.12% |
| Mar 2023 | 0.10% |
| June 2023 | 0.09% |
| Sept 2023 | 0.08% |
| Dec 2023 | 0.08% |
HFCL Ltd Share: Last 5 Years’ Financial Condition
To gain a better understanding of how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹ 4,738 Cr |
| 2020 | ₹ 3,839 Cr |
| 2021 | ₹ 4,423 Cr |
| 2022 | ₹ 4,727 Cr |
| 2023 | ₹ 4,572 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹ 232 Cr |
| 2020 | ₹ 237 Cr |
| 2021 | ₹ 246 Cr |
| 2022 | ₹ 326 Cr |
| 2023 | ₹ 307 Cr |
Last 5 Years’ Debt-To-Equity Ratio:
| 2019 | 0.38 |
| 2020 | 0.41 |
| 2021 | 0.45 |
| 2022 | 0.26 |
| 2023 | 0.24 |
Last 10 Years’ Profit Growth:
| 10 Years: | 19% |
| 5 Years: | 12% |
| 3 Years: | 10% |
| Current Year: | -1% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | 18% |
| 5 Years: | 13% |
| 3 Years: | 12% |
| Last Year: | 10% |
Sales Growth Over 10 Years:
| 10 Years: | 23% |
| 5 Years: | 8% |
| 3 Years: | 7% |
| Current Year: | 2% |
Company’s Negative Signs:
- Sales of the company grew at a slow 8.1% rate over the last five years.
- In the last three years, the company had a low return on equity of 12.1%.
- Promoters of the company have pledged a 44.7% stake in their holding.
- Dividends paid out have been low, at only 8.37% of profits in the last three years.
- Over the past three years, the percentage of promoters dropped to -4.21 percent.
Conclusion
This article is a complete guide about HFCL Ltd Share.
These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
Also, We have talked in detail about the share’s future prospects and growth potential.
Hopefully, these informations will help you in your further investment.
If you are new to our website and want to get all the latest updates related to the stock market, join us on Telegram Group.
If you have any further queries, please comment below. We will be happy to answer all your questions.
If you like this information, share the article with as many people as possible.
Disclaimer: Dear readers, we’d like to inform you that we are not authorized by SEBI (Securities and Exchange Board of India). The information on this site is only for informational and educational purposes and shouldn’t be considered financial advice or stock recommendations. Also, the share price predictions are completely for reference purposes. The price predictions will only be valid when there are positive signs on the market. Any uncertainty about the company’s future or the current state of the market will not be considered in this study. We are not responsible for any financial loss you might incur through the information on this site. We are here to provide timely updates about the stock market and financial products to help you make better investment choices. Do your own research before any investment.
