HFCL Shares Zoom 100% in One Month. More Gains Ahead?

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?  
  • Home
  • Views On News
  • Jul 6, 2021 - HFCL Shares Zoom 100% in One Month. More Gains Ahead?

HFCL Shares Zoom 100% in One Month. More Gains Ahead?

Jul 6, 2021

Himachal Futuristic Communications (HFCL) shares gained as much as 20% on the BSE on Monday after the company set up a second open wifi-powered village in Karnataka, ahead of its board meeting.

Input Output (IO), a product by HFCL, has deployed a second so-called 'PM-WANI Village' network in the Baidebattu village located in Karnataka.

The network will provide wi-fi-based internet access to 9,000 residents of the otherwise poorly connected village, the company said.

The company's board will also meet on 12 July 2021, to consider and approve the results for the quarter ending on 30 June 2021.

What led to the sudden surge in the share price of HFCL?

A sharp rally in the stock price has seen the market capitalization of HFCL vault past the Rs 100 bn mark.

Currently, HFCL's market capitalisation stands at Rs 120 bn on the BSE.

The company is one of the largest telecom project service providers for Reliance Jio and is currently engaged in the rolling out of 4G optical fiber cables (OFC) network services across Northern India.

--- Advertisement ---
Replay Available: The EV Gold Rush

Get the details of 3 EV stocks to potentially make life-changing gains in the long term

Catch a FREE REPLAY Here
------------------------------

Apart from deploying networks in Punjab and Jharkhand, HFCL also supplies fibre optic cables in Maharashtra, Telangana, and Chhattisgarh under Bharat Net projects.

5G technology is the next big upgrade for telecommunication networks and HFCL is gearing up to offer various products, solutions and services for this segment.

The capex required for 5G deployments in India are likely to entail massive investments of around Rs 3,650 bn in the next 5-6 years.

Open radio access network (OpenRAN) architecture enable network operators to design and implement 4G and 5G networks from different vendors leading to huge opportunities for manufacturers.

Under Bharat Net Phase II Project, Wi-Fi, infrastructure, electronics and optic networks bring out a Rs 400 bn opportunity.

In a statement, the company said,

  • The disruptions caused by the Covid-19 pandemic have increased the demand for home and industrial internet of things (IoT) devices and applications.

    The production linked incentive (PLI Scheme) by the government to incentivize the indigenous telecom product manufacturers increases the profitability and competitiveness.

HFCL expansion plans in India

Even though pandemic resulted in massive chaos across multiple industries, the tech industry witnessed significant growth resulting in expansion plans by companies.

HFCL has also hopped on the bus and earmarked Rs 2 bn for the current year.

A major chunk of the funds will be used for the expansion of capacity at its Hyderabad plant and the restructuring of Goa and Chennai facilities.

--- Advertisement ---
[Alert] Sell These 3 Stocks Immediately

These 3 stocks are ticking time bombs in your portfolio.

It is very likely that you could be owning these 3 overvalued...

fundamentally weak... ready to crash stocks... in your portfolio today.

Because many stock brokers have painted rosy pictures of these stocks. But the reality is starkly different.

If the market crashes, then these stocks could wipe out your wealth.

You should get rid of these stocks as soon as possible.

Click her for full details of these 3 landmines
------------------------------

HFCL is eyeing 5G radio access network (RAN) products such as Macro RU, 5G outdoor and indoor small cell.

Not only this but 5G transport such as cell site, fronthaul gateway and aggregation routers will also be included in the development of 5G products.

Mahendra Nahata, who is the Managing Director and HFCL Promoter, stated that India is on the verge of a 5G revolution, and commercial rollouts are expected to commence from next year, which will be followed by spectrum allocation.

Equitymaster's view on the telecom sector

We reached out to Tanushree Banerjee, Co-Head of Research at Equitymaster, and editor of the premium stock recommendation service StockSelect, for her view on the telecom sector.

Here's what she has to say...

  • While the telecom sector can have huge upsides due to 5G, investors must be very selective about the stocks. Higher-than-expected investments in spectrum acquisition or 5G deployment remain a risk.

    Other than a few telecom companies, most others do not have sufficient balance sheet strength.

How the stock markets reacted to HFCL

Shares of HFCL opened the day at Rs 94 on the BSE and Rs 92 on the NSE.

At the time of writing, the company's shares were trading up by 2.1% on the BSE.

At its current price, it is trading at a P/E of 45.4.

Watch Now: A Massive 15x Opportunity in Electric Vehicles

The share touched its 52-week high of Rs 95.7 and 52-week low of Rs 11.3 on 6 July 2021 and 28 July 2020, respectively.

Over the last 30 days, the HFCL share price is up 100%. Over the last one year, the company's share price is up 498%.

The scrip was trading at its highest level since February 2002.

About HFCL

HFCL (formerly known as Himachal Futuristic Communications Limited) is a publicly listed telecom company incorporated in India.

It has been in operation since 1987 and is into various segments of manufacturing, research and development (R&D) and turnkey solutions.

Ever since its inception, the company has entered various streams of hardware integration in telecommunications.

The company's manufacturing facilities are located at Solan in Himachal Pradesh, Salcete in Goa, and New Delhi.

It is geared up for meeting the new generation access network demand in future.

For more details about the company, you can have a look at HFCL factsheet and quarterly results on our website.

You can also compare HFCL with its peers.

HFCL vs ITI

HFCL vs AGC Networks

HFCL vs GTL Infra

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...

Equitymaster requests your view! Post a comment on "HFCL Shares Zoom 100% in One Month. More Gains Ahead?". Click here!

  

More Views on News

HFCL Announces Quarterly Results (2QFY22); Net Profit Up 60.9% (Quarterly Result Update)

Oct 18, 2021 | Updated on Oct 18, 2021

For the quarter ended September 2021, HFCL has posted a net profit of Rs 858 m (up 60.9% YoY). Sales on the other hand came in at Rs 11 bn (up 6.4% YoY). Read on for a complete analysis of HFCL's quarterly results.

HFCL Announces Quarterly Results (1QFY22); Net Profit Up 326.1% (Quarterly Result Update)

Jul 22, 2021 | Updated on Jul 22, 2021

For the quarter ended June 2021, HFCL has posted a net profit of Rs 909 m (up 326.1% YoY). Sales on the other hand came in at Rs 12 bn (up 72.5% YoY). Read on for a complete analysis of HFCL's quarterly results.

Bharti Airtel's Humongous Rights Issue to Open on 5 October. Key Points Investors Should Know (Views On News)

Sep 23, 2021

Shares of Bharti Airtel trade near record high ahead of rights issue.

This Company has Quietly Built an Enviable Startup Portfolio (Views On News)

Sep 22, 2021

The startups era has just begun, and it will provide massive opportunities to those who can spot the right trends at the right time.

More than 450% Gains for Tejas Networks in the Past Year. What Next? (Views On News)

Aug 18, 2021

Shares of Tejas Networks are up 173% since January 2021. Is the rally justified?

More Views on News

Most Popular

All You Need to Know About Primary and Secondary Markets

A look at the various types of primary and secondary markets and the key differences between them.

5 Green Energy Stocks to Watch as India Readies for a Revolution (Views On News)

Oct 13, 2021

The excitement around green energy stocks has opened up a huge contrarian opportunity in the traditional energy space.

Could HDFC Bank be a Big EV Winner? The Answer Will Surprise You... (Profit Hunter)

Oct 13, 2021

Why should investors take it for granted that India's Tesla will be one of the major auto stocks?

Tata Group Stocks are on Fire: Which one Should You Buy? (Profit Hunter)

Oct 15, 2021

Tata group stocks are on fire. Find out which one deserves your attention.

Massive Surge in the Shares of Tata Motors Today. Key Factors Favouring the Rally (Views On News)

Oct 13, 2021

Tata Motors zooms 23% after report of TPG investing Rs 75 bn in EV arm.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

HFCL SHARE PRICE


Oct 25, 2021 (Close)

TRACK HFCL

HFCL - ITI COMPARISON

COMPARE HFCL WITH

MARKET STATS