HFCL Limited (HFCL) AI Stock Analysis

• Market Cap: ₹100.76B
• Dividend Yield: 0.14%
• Average Volume (3M): 643.89K
• Price to Earnings (P/E): 297.3
• Beta (1Y): 1.55
• Revenue Growth: -18.38%
• EPS Growth: -91.01%
• Country: IN
• Employees: 2,114
• Sector: Technology
• Sector Strength: 82
• Industry: Communication Equipment
• EPS (TTM): -0.20
• Shares Outstanding: 1,442,672,900
• 10 Day Avg. Volume: 972,653
• 30 Day Avg. Volume: 643,893
• 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: 4.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: ₹74.00 ▲(4.27% Upside)

The overall stock score for HFCL is primarily influenced by its strong financial performance, which is tempered by bearish technical indicators and a high P/E ratio suggesting overvaluation. The stock appears to be under technical pressure, with indicators pointing to current weakness despite a fundamentally solid financial position.

HFCL Limited Business Overview & Revenue Model

Company Description

HFCL Limited (HFCL) is an Indian telecommunications and technology company that specializes in the manufacturing of optical fiber cables, telecom equipment, and providing turnkey solutions to telecom operators, defense, and railways. It operates in various sectors including telecommunications, defense, and infrastructure, offering a wide range of products and services that cater to the needs of both domestic and international clients.

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: 70.97
• 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 70.97 is below the 20-day moving average (MA) of 71.91, below the 50-day MA of 76.97, and below the 200-day MA of 90.61, indicating a bearish trend. The MACD of -1.77 indicates Negative momentum. The RSI at 43.00 is Neutral, neither overbought nor oversold. The STOCH value of 27.82 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
Sector *	61 Neutral	$35.55B	8.91	-10.55%	1.87%	8.47%	-8.26%
PARACABLES	61 Neutral	₹14.26B	17.77		―	44.41%	-23.94%
STLTECH	60 Neutral	₹53.60B	―		1.10%	-8.29%	61.61%
ASTRAMICRO	58 Neutral	₹95.75B	58.90		0.20%	17.79%	20.42%
TEJASNET	54 Neutral	₹103.96B	56.49		0.43%	100.45%	6.29%
HFCL	51 Neutral	₹100.76B	297.32		0.14%	-18.38%	-91.01%
AKSHOPTFBR	46 Neutral	₹1.29B	―		―	-43.70%	64.13%