HFCL Limited (HFCL) AI Stock Analysis

• Market Cap: ₹108.89B
• Dividend Yield: 0.13%
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): 390.9
• Beta (1Y): 1.67
• Revenue Growth: -19.16%
• EPS Growth: -92.64%
• Country: IN
• Employees: 2,114
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.47
• Shares Outstanding: 1,442,672,900
• 10 Day Avg. Volume: 1,557,863
• 30 Day Avg. Volume: 1,945,886
• PEG Ratio: -1.39
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 2.83
• P/FCF Ratio: 70.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹81.00
• Price Target Upside: 7.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ₹81.00 ▲(7.31% Upside)

The overall stock score is primarily influenced by strong financial performance and positive technical indicators. However, the high P/E ratio suggests potential overvaluation, which significantly impacts the valuation score. The absence of earnings call data and corporate events means these factors do not influence the score.

HFCL Limited Business Overview & Revenue Model

Company Description

HFCL Limited manufactures and sells telecom products in India and internationally. The company operates through Telecom Products and Turnkey Contracts and Services segments. It offers a range of optical fiber cables, such as aerial, armoured, Fiber-to-Anywhere (FTTx), micro, and unarmoured cables; microwave solutions, including packet microwave, hybrid microwave, and small cell radio solutions, as well as network management systems; and gigabit passive optical network systems, including optical line terminals (OLT), mini OLT, and optical network terminals. The company also provides power electronic solutions, including AC and DC power, network integrated control and monitoring, and power racks passive telecom infrastructure; battery management systems; and solar solutions comprising hybrid DC power systems, off grid solar plants, solar water pumps, and MPPT based solar charge controllers. In addition, it offers telecom network solutions, including in-building system, optical fiber cable network, optical transmission solutions, as well as fiber solutions to the home, building, premises, and curb. Further, the company provides network design, equipment supply, installation and commissioning, network integration, and post deployment warranty and AMC support for metro lines, mainline railways, and railway freight corridors; and various solutions consisting of communication/IT/telecom infrastructure, data center, disaster recovery and management, security, surveillance, traffic management, and citizen/mobile applications, as well as power, water, waste, and other utility management. It has a collaboration agreement with Qualcomm Technologies, Inc. for the design and development of 5G millimeter wave FWA and CPE products. It serves telecom, security, and railway sectors. The company was formerly known as Himachal Futuristic Communications Limited and changed its name to HFCL Limited in October 2019. HFCL Limited was incorporated in 1987 and is based in New Delhi, India.

How the Company Makes Money

HFCL Limited generates revenue through the manufacturing and sale of optical fiber cables and telecom equipment. The company also provides turnkey network solutions to telecom operators, which involves the design, execution, and management of telecom networks. HFCL's revenue streams are diversified across product sales, project execution, and maintenance services. Additionally, the company has strategic partnerships with global technology firms, enhancing its product offerings and market reach, thus contributing significantly to its earnings.

HFCL Limited Financial Statement Overview

Summary

HFCL Limited demonstrates strong operational and financial fundamentals with stable revenues and profitability margins. The balance sheet reflects a moderate reliance on debt, supported by a solid equity base. However, cash flow volatility presents potential challenges, despite recent improvements in free cash flow.

Income Statement

The company shows a stable revenue base with minor fluctuations in revenue growth. The gross profit margin remains robust, indicating effective cost management. However, the net profit margin has seen a decline over the latest period, suggesting challenges in managing expenses or increased competition affecting pricing power. EBIT and EBITDA margins are healthy, showcasing efficient operational management.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. The return on equity (ROE) is decent but has shown variability, suggesting fluctuating profitability. The equity ratio indicates a solid foundation of equity financing, which provides stability in economic downturns.

Cash Flow

The cash flow situation presents a mixed picture. The company achieved a positive free cash flow in the latest period after a negative trend, indicating improved cash management. However, the operating cash flow to net income ratio reflects some inconsistency, suggesting operational cash generation may be volatile.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	37.77B	40.65B	44.65B	47.43B	47.27B	44.23B
Gross Profit	10.04B	11.07B	12.39B	12.57B	12.23B	10.14B
EBITDA	2.74B	4.10B	5.68B	6.05B	6.57B	5.44B
Net Income	338.70M	1.77B	3.30B	3.01B	3.13B	2.39B
Balance Sheet
Total Assets	0.00	75.46B	64.87B	54.73B	51.71B	52.16B
Cash, Cash Equivalents and Short-Term Investments	4.93B	4.93B	3.42B	3.35B	2.50B	242.90M
Total Debt	0.00	15.22B	9.91B	9.36B	7.83B	9.42B
Total Liabilities	-41.19B	34.27B	24.87B	23.28B	23.53B	32.92B
Stockholders Equity	41.19B	40.79B	39.56B	31.08B	27.98B	19.16B
Cash Flow
Free Cash Flow	0.00	1.66B	-4.55B	-1.05B	228.10M	-492.50M
Operating Cash Flow	0.00	3.96B	-448.80M	2.36B	2.06B	568.20M
Investing Cash Flow	0.00	-5.18B	-4.49B	-446.30M	-4.58B	-769.40M
Financing Cash Flow	0.00	1.70B	4.54B	-1.45B	2.48B	249.80M

HFCL Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 75.48
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HFCL, the sentiment is Neutral. The current price of 75.48 is above the 20-day moving average (MA) of 75.03, above the 50-day MA of 73.45, and below the 200-day MA of 83.59, indicating a neutral trend. The MACD of 0.64 indicates Negative momentum. The RSI at 51.86 is Neutral, neither overbought nor oversold. The STOCH value of 69.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:HFCL.

HFCL Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASTRAMICRO	65 Neutral	₹102.79B	63.22	―	0.20%	17.79%	20.42%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HFCL	61 Neutral	₹108.89B	390.89	―	0.13%	-19.16%	-92.64%
PARACABLES	61 Neutral	₹13.12B	16.34	―	―	44.41%	-23.94%
TEJASNET	60 Neutral	₹104.36B	56.75	―	0.42%	-17.23%	-185.73%
STLTECH	48 Neutral	₹56.54B	―	―	1.10%	-8.29%	61.61%
AKSHOPTFBR	45 Neutral	₹1.23B	―	―	―	-43.70%	64.13%