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HFCL Limited
(HFCL)
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Rating:59Neutral
Price Target:
₹234.00
▲(18.87% Upside)
Action:Reiterated
Date:06/04/26
The score is mainly held back by weak and volatile cash flow (negative operating and free cash flow in FY2026), despite strong FY2026 revenue growth and a manageable leverage profile. Technicals show strong momentum but are overheated (very high RSI/Stoch), and valuation is a meaningful headwind due to the very high P/E and low dividend yield.
Positive Factors
Revenue Rebound
The sharp FY2026 rebound indicates renewed demand and order momentum across HFCL’s telecom infrastructure activities, supporting better capacity utilization and providing a stronger base for medium-term growth.
Negative Factors
Weak Cash Conversion
Deeply negative operating and free cash flow means reported earnings are not consistently converting into liquidity. Working-capital swings, project timing, or investment needs could increase funding reliance and execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Rebound
The sharp FY2026 rebound indicates renewed demand and order momentum across HFCL’s telecom infrastructure activities, supporting better capacity utilization and providing a stronger base for medium-term growth.
Read all positive factors
HFCL Limited (HFCL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹346.68B
Dividend Yield0.04%
Average Volume (3M)1.95M
Price to Earnings (P/E)58.3
Beta (1Y)1.75
Revenue Growth58.66%
EPS Growth1536.61%
CountryIN
Employees2,114
SectorGeneral
Sector StrengthN/A
IndustryCommunication Equipment
Share Statistics
EPS (TTM)3.84
Shares Outstanding1,530,602,400
10 Day Avg. Volume1,557,863
30 Day Avg. Volume1,945,886
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)2.03
Price to Sales (P/S)2.01
P/FCF Ratio-12.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.05
Revenue Forecast (FY)₹63.66B
HFCL Limited Business Overview & Revenue Model
Company Description
Based in New Delhi, India, and established in 1987, HFCL Limited (formerly Himachal Futuristic Communications Limited until October 2019) is an international manufacturer and seller of telecommunications products. The company operates through two ...
How the Company Makes Money
HFCL primarily makes money by selling telecom network products and delivering end-to-end network projects. A major revenue stream comes from manufacturing and supplying optical fiber and fiber-optic cables and related passive connectivity products...
HFCL Limited Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
72
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 59.93B | 49.49B | 40.65B | 44.65B | 47.43B | 47.27B |
| Gross Profit | 17.99B | 11.45B | 11.07B | 12.39B | 12.57B | 12.23B |
| EBITDA | 12.28B | 8.27B | 4.10B | 5.68B | 6.05B | 6.57B |
| Net Income | 5.73B | 3.12B | 1.77B | 3.30B | 3.01B | 3.13B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 88.68B | 75.46B | 64.87B | 54.73B | 51.71B |
| Cash, Cash Equivalents and Short-Term Investments | 5.10B | 5.10B | 4.93B | 3.42B | 3.35B | 2.50B |
| Total Debt | 0.00 | 18.96B | 15.22B | 9.91B | 9.36B | 7.83B |
| Total Liabilities | -49.49B | 39.19B | 34.27B | 24.87B | 23.28B | 23.53B |
| Stockholders Equity | 49.49B | 48.91B | 40.79B | 39.56B | 31.08B | 27.98B |
Cash Flow | ||||||
| Free Cash Flow | -1.77B | -8.21B | 1.66B | -4.55B | -1.05B | 228.10M |
| Operating Cash Flow | -436.00M | -5.91B | 3.96B | -448.80M | 2.36B | 2.06B |
| Investing Cash Flow | -790.90M | -3.29B | -5.18B | -4.49B | -446.30M | -4.58B |
| Financing Cash Flow | 816.00M | 8.87B | 1.70B | 4.54B | -1.45B | 2.48B |
HFCL Limited Technical Analysis
Positive
196.85
Price Trends
208.16
Positive
167.35
Positive
118.35
Positive
Market Momentum
6.15
Negative
57.44
Neutral
77.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HFCL, the sentiment is Positive. The current price of 196.85 is below the 20-day moving average (MA) of 208.93, below the 50-day MA of 208.16, and above the 200-day MA of 118.35, indicating a bullish trend. The MACD of 6.15 indicates Negative momentum. The RSI at 57.44 is Neutral, neither overbought nor oversold. The STOCH value of 77.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:HFCL.
HFCL Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ₹161.69B | 84.59 | ― | 0.12% | 4.02% | 16.27% | |
63 Neutral | ₹15.85B | 14.51 | ― | 5.12% | 20.48% | 2.16% | |
59 Neutral | ₹346.68B | 58.31 | ― | 0.05% | 58.66% | 1536.61% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | ₹316.29B | 124.73 | ― | ― | 18.90% | ― | |
46 Neutral | ₹269.48B | 102.01 | ― | ― | -41.28% | ― | |
41 Neutral | ₹90.67B | -9.91 | ― | 0.55% | -82.05% | -593.40% |
* General Sector Average
IN:HFCL
HFCL Limited
223.60
150.90
207.57%
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-17.86%
HFCL Limited Corporate Events
HFCL shutters non-operational Australian subsidiary with no financial impact
Aug 19, 2026
HFCL Limited has announced that its Australian step-down subsidiary, HFCL Pty Ltd, has been voluntarily liquidated and deregistered with effect from August 19, 2026. The subsidiary had no business operations and reported nil revenue and negligible...
HFCL to Join Motilal Oswal Global Investor Conference for Business Update Discussions
Aug 15, 2026
HFCL Limited, a telecom equipment and network solutions provider, plays a significant role in India’s communications infrastructure through its optical fiber cable manufacturing and related services. The company targets both domestic and int...
HFCL to Engage Investors at Nuvama India Conference 2026
Aug 10, 2026
HFCL Limited has announced that its management will participate virtually in the Nuvama India Conference 2026 (Hong Kong Edition) on August 13, 2026, engaging with investors through group and one-on-one meetings. The discussions will cover general...
HFCL wins ₹523 crore export orders for optical fiber cables
Aug 2, 2026
HFCL Limited has secured export orders worth about USD 54.81 million, equivalent to roughly INR 522.73 crore, from renowned international customers for the supply of optical fiber cables tailored to customer specifications. The contracts, received...
HFCL Shifts Registered Office to Gurugram, Updates Corporate Charter
Jul 31, 2026
HFCL Limited has shifted its registered office from the State of Himachal Pradesh to the State of Haryana, with the new headquarters now located in Gurugram. The change has been formally approved by the Regional Director, Northern Region-II, and r...
HFCL opens special window for legacy physical share transfers under SEBI norms
Jul 30, 2026
HFCL Limited has announced the opening of a one-year special window, from February 5, 2026 to February 4, 2027, to re-lodge transfer requests for physical shares that were sold or purchased prior to April 1, 2019. The initiative follows a SEBI cir...
HFCL Publishes Shareholder Notices on Transfer of Unclaimed Dividends and Shares
Jul 30, 2026
HFCL Limited has notified the stock exchanges that it has published newspaper advertisements informing equity shareholders about the impending transfer of unpaid or unclaimed dividends and corresponding equity shares to the Investor Education and ...
HFCL posts Q1 FY27 earnings call transcript for investor access
Jul 29, 2026
HFCL Limited has submitted to the stock exchanges the transcript of its conference call discussing unaudited financial results for the first quarter ended June 30, 2026, for FY 2026-27. The Q1 FY27 call, held on July 22 and approved by the board t...
HFCL wins ₹495.8 crore export order for data centre fiber solutions
Jul 10, 2026
HFCL Limited has secured an international export order worth approximately USD 51.98 million, or INR 495.80 crore, for the supply of optical fiber cable based data centre connectivity solutions. The order, obtained through its overseas wholly owne...
HFCL Restructures Defence Portfolio, Acquires Aerostructures Business to Build Scalable Platform
Jun 3, 2026
HFCL’s board has approved a series of intra‑group transactions to consolidate and scale its defence operations under subsidiary HFCL Advance Systems Private Limited, including an equity infusion of ₹89.25 crore, a new shareholder...
HFCL Restructures Defence Portfolio, Gains Aerostructures Footprint and ₹1,890-Crore Export Order Book
Jun 3, 2026
HFCL Limited’s board has approved a series of intra-group transactions to consolidate and scale its defence business under HFCL Advance Systems Private Limited, including an ₹89.25 crore equity infusion into HASPL, transfer of HFCLR...
HFCL consolidates defence and aerostructures businesses under HFCL Advance Systems
Jun 3, 2026
HFCL’s board has approved a series of internal restructurings and investments aimed at consolidating its defence and aerostructures businesses under HFCL Advance Systems Private Limited. The company will invest ₹89.25 crore in the subs...
HFCL Restructures Defence Arm, Buys Aerostructure Assets to Build Export-Focused Platform
Jun 3, 2026
HFCL Limited has approved a series of transactions to reorganize and scale its defence operations, centered on its wholly owned subsidiary HFCL Advance Systems Private Limited. The board cleared an ₹89.25 crore equity infusion into HFCL Adva...
HFCL Restructures Defence Portfolio, Buys Aerostructure Business to Build Scalable Platform
Jun 3, 2026
HFCL Limited has approved a series of intra-group restructurings and investments centred on its wholly owned subsidiary HFCL Advance Systems Private Limited, including an equity infusion of ₹89.25 crore, the transfer of its thermal weapon si...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.