Want to see IN:HFCL full AI Analyst Report?
Top Page
HFCL Limited
(HFCL)
Select Model
Select Model
Rating:59Neutral
Price Target:
₹227.00
▲(234.96% 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 Growth Momentum
A 32.8% revenue rebound in FY2026 signals sustained demand recovery and stronger order momentum for telecom network projects. Over a 2–6 month horizon this improves capacity utilization, steadies backlog conversion and supports recurring product and services revenues tied to infrastructure rollouts.
Negative Factors
Volatile and Negative Cash Generation
Material negative operating and free cash flow in FY2026, with an inconsistent cash pattern, creates a durable execution and liquidity risk. Project timing or working-capital swings may force reliance on external funding, raising refinancing and covenant risk and limiting organic funding for capex or growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Momentum
A 32.8% revenue rebound in FY2026 signals sustained demand recovery and stronger order momentum for telecom network projects. Over a 2–6 month horizon this improves capacity utilization, steadies backlog conversion and supports recurring product and services revenues tied to infrastructure rollouts.
Read all positive factors
HFCL Limited (HFCL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹332.75B
Dividend Yield0.15%
Average Volume (3M)1.95M
Price to Earnings (P/E)100.8
Beta (1Y)1.76
Revenue Growth21.77%
EPS Growth72.87%
CountryIN
Employees2,114
SectorGeneral
Sector StrengthN/A
IndustryCommunication Equipment
Share Statistics
EPS (TTM)2.13
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)3.55
Revenue Forecast (FY)₹58.13B
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 makes money primarily by selling telecom network infrastructure products and executing network-related solution contracts for customers building or expanding communication networks. Key revenue streams include: (1) Product sales: revenue from...
HFCL Limited Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
72
Positive
Cash Flow
38
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 49.49B | 40.65B | 44.65B | 47.43B | 47.27B |
| Gross Profit | 11.45B | 11.07B | 12.39B | 12.57B | 12.23B |
| EBITDA | 8.27B | 4.10B | 5.68B | 6.05B | 6.57B |
| Net Income | 3.12B | 1.77B | 3.30B | 3.01B | 3.13B |
Balance Sheet | |||||
| Total Assets | 88.68B | 75.46B | 64.87B | 54.73B | 51.71B |
| Cash, Cash Equivalents and Short-Term Investments | 5.10B | 4.93B | 3.42B | 3.35B | 2.50B |
| Total Debt | 17.44B | 15.22B | 9.91B | 9.36B | 7.83B |
| Total Liabilities | 39.19B | 34.27B | 24.87B | 23.28B | 23.53B |
| Stockholders Equity | 48.91B | 40.79B | 39.56B | 31.08B | 27.98B |
Cash Flow | |||||
| Free Cash Flow | -8.21B | 1.66B | -4.55B | -1.05B | 228.10M |
| Operating Cash Flow | -5.91B | 3.96B | -448.80M | 2.36B | 2.06B |
| Investing Cash Flow | -3.29B | -5.18B | -4.49B | -446.30M | -4.58B |
| Financing Cash Flow | 8.87B | 1.70B | 4.54B | -1.45B | 2.48B |
HFCL Limited Technical Analysis
Positive
67.77
Price Trends
178.45
Positive
128.04
Positive
99.41
Positive
Market Momentum
12.17
Positive
60.41
Neutral
51.09
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 67.77 is below the 20-day moving average (MA) of 208.51, below the 50-day MA of 178.45, and below the 200-day MA of 99.41, indicating a bullish trend. The MACD of 12.17 indicates Positive momentum. The RSI at 60.41 is Neutral, neither overbought nor oversold. The STOCH value of 51.09 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | ₹171.26B | 84.63 | ― | 0.24% | 10.62% | 25.69% | |
64 Neutral | ₹20.53B | 33.67 | ― | ― | 21.44% | -31.59% | |
59 Neutral | ₹332.75B | 100.77 | ― | 0.15% | 21.77% | 72.87% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | ₹278.43B | 453.72 | ― | ― | -3.90% | ― | |
52 Neutral | ₹100.36B | -10.91 | ― | 0.55% | -87.10% | -296.63% | |
42 Neutral | ₹1.02B | -7.54 | ― | ― | -3.59% | 49.79% |
* General Sector Average
IN:HFCL
HFCL Limited
214.50
132.06
160.19%
IN:AKSHOPTFBR
Aksh Optifibre Limited
6.14
-2.45
-28.52%
IN:ASTRAMICRO
Astra Microwave Products Ltd.
1,714.15
721.88
72.75%
IN:PARACABLES
Paramount Communications Limited
65.94
5.73
9.52%
IN:STLTECH
Sterlite Technologies Limited
515.65
401.65
352.32%
IN:TEJASNET
Tejas Networks Ltd.
556.50
-96.75
-14.81%
HFCL Limited Corporate Events
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.