HFCL on the prowl for software companies - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

HFCL on the prowl for software companies

Mar 11, 2000

Himachal Futuristic Communications Limited (HFCL) has stated that it is in the process of identifying companies in the software sector (involved in telecom software) for the purpose of acquisition. The announcement comes close on the heels of a successful private placement and a preferential allotment of a 10% stake in the company to Kerry Packer. Telecom software is one of the most lucrative areas in software development currently in view of the large-scale investments being channeled into the sector.

The company’s decision to acquire software companies involved in telecom software related work is aimed at increasing the competitiveness of its core telecom hardware business. Moreover, having an in-house software development unit will reduce the costs involved in out sourcing such services.

Given the company’s cash rich position the decision to acquire a company would not exert pressure on its existing cash position. Instead, an acquisition would enable the company to deploy its burgeoning cash reserves in a related area of business that would both improve its competitiveness and its profitability (in view of the higher margins that software companies earn).

Equitymaster requests your view! Post a comment on "HFCL on the prowl for software companies". Click here!

  

More Views on News

Bharti Airtel Q4: Back to Quarterly Profit on Subscriber Additions & Data Usage (Views On News)

May 18, 2021

The company swung to quarterly profits as it added more subscribers and amid increased data usage.

Why Did Tata Communications Shares Plunge Today? (Views On News)

Apr 29, 2021

Key takeaways from Tata Communications Q4FY21 results.

More Views on News

Most Popular

Hotel Stocks Will Reward Investors (Fast Profits Daily)

Jun 8, 2021

This is why I'm bullish on the hotel and hospitality sector.

My 'Unlock' Investments (Fast Profits Daily)

Jun 11, 2021

The best unlock investments you can make in the market.

The Most Visible Sign of India's Revival is on Two Wheels (Profit Hunter)

Jun 9, 2021

Investing in the best stocks could result in wealth compounding on a massive scale.

How I Discovered a 400-Year-Old Open Secret to Extreme Wealth (Profit Hunter)

Jun 11, 2021

Charlie Munger's open secret about investing success.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

TRACK SAHELI LEASING

  • Track your investment in SAHELI LEASING with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MARKET STATS