HFCL Limited (HFCL) AI Stock Analysis

• Market Cap: ₹104.07B
• Dividend Yield: 0.14%
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): 307.1
• Beta (1Y): 1.67
• Revenue Growth: -18.38%
• EPS Growth: -91.01%
• Country: IN
• Employees: 2,114
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.20
• Shares Outstanding: 1,442,672,900
• 10 Day Avg. Volume: 3,130,284
• 30 Day Avg. Volume: 1,690,226
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹74.00
• Price Target Upside: 2.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ₹74.00 ▲(2.58% Upside)

HFCL Limited's overall stock score is primarily influenced by its solid financial performance, despite some cash flow volatility. Technical analysis indicates a bearish trend, and the high P/E ratio suggests overvaluation concerns. The lack of earnings call data and corporate events limits additional insights.

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 fundamentals with stable revenues and healthy profitability margins. The balance sheet shows a moderate reliance on debt supported by a solid equity base. Cash flow volatility poses challenges, but recent improvements in free cash flow are positive.

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	40.78B	41.22B	44.58B	47.43B	47.18B	44.17B
Gross Profit	9.07B	11.78B	12.37B	12.56B	12.19B	10.14B
EBITDA	5.04B	5.07B	6.13B	6.66B	6.87B	5.82B
Net Income	1.77B	1.77B	3.30B	3.01B	3.13B	2.39B
Balance Sheet
Total Assets	75.46B	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	15.22B	15.22B	9.91B	9.36B	7.83B	9.42B
Total Liabilities	34.27B	34.27B	24.87B	23.28B	23.53B	32.92B
Stockholders Equity	40.79B	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: Negative
• Last Price: 72.14
• 50DMA: Negative
• 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 Negative. The current price of 72.14 is below the 20-day moving average (MA) of 73.08, below the 50-day MA of 74.27, and below the 200-day MA of 86.75, indicating a bearish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 44.92 is Neutral, neither overbought nor oversold. The STOCH value of 41.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹99.15B	60.99	13.97%	0.21%	17.79%	20.42%
TEJASNET	64 Neutral	₹104.13B	56.56	11.61%	0.42%	100.45%	6.29%
PARACABLES	61 Neutral	₹13.62B	16.96	12.13%	―	44.41%	-23.94%
HFCL	55 Neutral	₹104.07B	307.11	―	0.14%	-18.38%	-91.01%
STLTECH	52 Neutral	₹57.16B	-84.26	-6.18%	―	-8.29%	61.61%
AKSHOPTFBR	45 Neutral	₹1.24B	-4.59	-223.77%	―	-43.70%	64.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%