HFCL Ltd
Ticker: HFCL
Decent
66/100
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Investing Reference
Price
77.23
Market Cap
11137.15
Debt/Equity
0.3695
ROE %
4.370
PB
2.7036
Promoter %
31.576
Pledge %
17.090
1Y Rev Growth %
-9.721
5Y Rev Growth %
1.320
NP Margin %
4.303
NP Margin 5Y Avg %
5.947
Trading Reference
1M Return %
1.407
6M Return %
-6.411
1Y Return %
-42.750
% Away 52W High
79.386
% Away 52W Low
12.646
Daily Volume
14589569
Investment Verdict
Risky
Score 46/100 · Position size: 6%
Higher volatility/weak areas. Consider only a small allocation if risk appetite is high.
Trading Verdict
Avoid
Score 9/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
HFCL Ltd is currently trading near a key support level, with the 50-day EMA showing a bullish crossover with the 200-day EMA. If the stock maintains above this support, there is a potential for upward movement towards the resistance level. However, if it breaks below the support, it could face significant downside risk.
Upside Probability: 25% | Downside Probability: 15%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
HFCL Ltd is a leading Indian telecommunications equipment manufacturer, specializing in advanced technology solutions for a connected world. Catering to telecom operators, enterprises, and government sectors, HFCL plays a crucial role in enhancing digital infrastructure. With a strong focus on innovation and quality, the company is well-positioned to support India's growing demand for reliable connectivity.
- Established leader in telecom equipment manufacturing
- Innovative solutions for a connected future
- Supports government initiatives for digital India
- Strong partnerships with major telecom operators
- Commitment to quality and customer satisfaction
Investment Thesis
HFCL Ltd presents a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. The company's strategic initiatives position it well to capitalize on the booming telecom and digital infrastructure sectors.
- Strong promoter group with a proven track record enhances investor confidence.
- Robust growth in digital services aligns with India's digital transformation agenda.
- Attractive valuation metrics compared to industry peers indicate potential for upside.
- Strategic partnerships and government initiatives support future revenue growth.
- HFCL's innovative solutions position it as a key player in the telecom sector.
Opportunity vs Risk
Opportunities
- Growing demand for telecom infrastructure
- Government push for digital India
- Expansion into new markets
- Strong R&D capabilities
- Potential for strategic partnerships
Risks ⚠️
- Intense competition in telecom sector
- Regulatory changes affecting operations
- Market volatility impacting stock price
- Dependency on government contracts
- Fluctuating raw material costs
Peer Perspective
HFCL Ltd trades at a discount to peers like Tejas Networks and Sterlite Technologies, offering potential upside. A stable margin and accelerated growth could trigger a rerating in its valuation.
Future Outlook
HFCL Ltd is poised for growth, driven by increasing demand for telecom infrastructure. However, successful execution of projects and effective cost control will be crucial to fully realize its potential in the coming years.
AI FAQs for Retail Users
- Q: What does HFCL Ltd do?A: HFCL Ltd is a telecommunications equipment manufacturer and provider of network solutions.
- Q: Is HFCL Ltd a profitable company?A: HFCL has reported profits in recent quarters, but past performance does not guarantee future results.
- Q: What are the main risks of investing in HFCL Ltd?A: Market volatility, competition, and regulatory changes are key risks for HFCL Ltd investors.
- Q: How can I buy shares of HFCL Ltd?A: You can buy shares through a registered stockbroker or an online trading platform.
- Q: What is HFCL Ltd's market position?A: HFCL is considered a significant player in the Indian telecom sector, focusing on innovation and growth.
📊 Stock Investment Checklist (100 Points)
HFCL Ltd • Updated: 2025-09-17 14:16:21
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10BusinessHighThe telecom sector is evolving with 5G and digital transformation, but HFCL faces competition.
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10GrowthHighConsistent revenue growth over the past few years, but profit margins are fluctuating.
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10ProfitabilityHighROE and ROCE are decent, but OCF is inconsistent compared to net profit.
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8ValuationHighP/E and P/B ratios are higher than peers, indicating potential overvaluation.
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7BalanceHighModerate debt levels with reasonable liquidity, but reserves are low.
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6GovernanceGoodPromoter holding is strong, but there are concerns about pledging.
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5DriversGoodGrowth drivers exist, but execution risks are significant in a competitive landscape.
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5TechnicalsGoodMarket sentiment is mixed with low liquidity and volatile price action.
Final Score & Verdict
Score 66 / 100
• Decent
HFCL Ltd shows potential in a growing sector, but faces challenges in profitability and valuation metrics.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 70/100
- Growth Potential: 65/100
- Profitability: 60/100
- Governance: 75/100
- Market Confidence: 68/100