HFCL Ltd Stock Analysis

BSE: 500183 | NSE: HFCL | Telecommunication - Equipment | Mid Cap

BSE Share Price 06-Dec-2022 18:01
83.60 0.20 (0.24%)

DeciZen - Make an Informed Decision on HFCL

Overall Rating

1. Quality

2. Valuation

Overvalued

3. Price Trend

HFCL Price Chart

P/E Ratio (SA) :
45.00
Market Cap :
11,518.1 Cr.
52-wk low :
51.6
52-wk high :
101.4
Bole Toh?

1. Is HFCL Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that HFCL Ltd is a average quality company.

2. Is HFCL Ltd undervalued or overvalued?

The key valuation ratios of HFCL Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is HFCL Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of HFCL Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of HFCL:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
HFCL Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 7.3%16.4%17.1%19.5%11.1%12.4%13%13%12.9%12.5%-
Value Creation Index -0.50.20.20.4-0.2-0.1-0.1-0.1-0.1-0.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 6052,0192,5512,5702,0163,0664,3663,5474,1064,2864,244
YoY Gr. Rt. %-233.5%26.4%0.7%-21.5%52.1%42.4%-18.8%15.8%4.4%-
Adj EPS 0.41.21.41.811.21.41.71.72.11.9
YoY Gr. Rt. %-181.4%18.2%28%-45.4%24%15.3%16.1%0.6%24%-
BVPS (₹) 5.16.17.57.48.49.711.212.714.519.820.5
Adj Net Profit 53.5150177227123154182214215284256
Cash Flow from Ops. 84.3101119-79.9138183-16.420882.5141-
Debt/CF from Ops. 3.42.82.4-6.63.62.3-33.72.99.74.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 24.3%16.3%-0.6%4.4%
Adj EPS 19.1%15.7%13.1%24%
BVPS 16.318.720.936.9
Share Price 22.9% 22.5% 67.2% 7.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 7.819.419.123.612.613.613.713.812.212.49.2
Op. Profit Mgn % 13.49.58.912.598.27.711.511.412.410.8
Net Profit Mgn % 8.87.56.98.96.154.265.26.66
Debt to Equity 0.40.30.30.60.50.40.40.40.40.20
Working Cap Days 376155162201329236200289318337277
Cash Conv. Cycle 17842295915510167878287118

Recent Performance Summary

Net Profit is growing at healthy rate in last 3 years 13.12%

Return on Equity has declined versus last 3 years average to 9.20%

Sales growth has been subdued in last 3 years -0.61%

Sales growth is not so good in last 4 quarters at -6.54%

Latest Financials - HFCL Ltd.

Standalone Consolidated
TTM EPS (₹) 1.9 2
TTM Sales (₹ Cr.) 4,244 4,623
BVPS (₹.) 20.5 21.1
Reserves (₹ Cr.) 2,692 2,770
P/BV 4.07 3.96
PE 45.00 41.62
From the Market
52 Week Low / High (₹) 51.55 / 101.35
All Time Low / High (₹) 5.95 / 2552.90
Market Cap (₹ Cr.) 11,518
Equity (₹ Cr.) 137.8
Face Value (₹) 1
Industry PE 87.9

Management X-Ray of HFCL :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *55.4847.3344.7244.7244.7211.180.0044.7244.7244.72
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of HFCL

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

HFCL Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of HFCL on 06-Dec-2022 18:01 is : 83.60.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 06-Dec-2022 18:01 the market cap of HFCL stood at ₹ 11,518.1.
The latest PE ratio of HFCL as of 06-Dec-2022 18:01 is 45.00.
The latest PB ratio of HFCL as of 06-Dec-2022 18:01 is 4.07
The 52-week high of HFCL is ₹ 101.3 and the 52-week low is ₹ 51.55.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of HFCL is ₹ 4,244 ( Cr.) .

About HFCL Ltd

HFCL Limited (formerly known as Himachal Futuristic Communications Limited), established in 1987, is a leading Technology Enterprise connecting the world with the fully integrated communication network solutions and specialised services. Consistently empowering innovation, it endeavour to develop new technologies and next-generation products which are globally benchmarked and cost effective. Research & Development activities are spearheaded by its two Centres of Excellence (CoEs) at Gurgaon and Bengaluru, further supported by invested R&D Houses and Collaborators from different locations in India and Overseas.

HFCL manufacture Optical Fiber, Optical Fiber Cables (OFC), Passive Interconnect Solutions and high-end Transmission and Access Equipment. Its technologically advanced offerings span the entire value chain, from manufacturing hi-tech communication network products to providing specialized services, which get deployed across Telecom, Defence, Railways, Utilities and Security & Surveillance Networks, both in the Private and Government Sector.

Business area of the company

HFCL is a diverse telecom infrastructure enabler with active interest spanning telecom infrastructure development, system integration, and manufacture and supply of high-end telecom equipment, Optic Fiber and Optic Fiber Cable (OFC).

Products

Optical Fiber Cables

  • Futureline
  • Aerial
  • Armoured
  • FTTx
  • Micro
  • Unarmoured

Telecom equipments

  • Microwave Radio’s
  • GPON

Electronics

  • Telecom Power
  • Battery Management
  • Solar

Solutions

  • Telecom Networks
  • FTTx
  • In-Building
  • OFC
  • Optical Transmission

Railway Telecom Networks

Safe and Smart Cities

Milestones and achievements

  • 2011: New Strategic Partnership with Reliance Jio for creation of 4G Network Infrastructure.
  • 2011: Restructured Debt & Equity.
  • 2011: Merger of high net-worth company, Sunvision Engineering Company Pvt. Ltd.
  • 2012: Capacity of Goa manufacturing facility expanded to 2.6m fkm.
  • 2013: Doubled the Revenue. PAT increased by 5 times.
  • 2014: Capacity of Goa manufacturing facility expanded to 4.9m fkm.
  • 2015: Set up Railways Communication, Smart City, Defence communication as new business verticals.
  • 2015: Defence equipment business vertical was awarded seven manufacturing licenses from GoI.
  • 2016: Capacity of Goa manufacturing facility expanded to 7m fkm.
  • 2016: Commencement of OFC manufacturing facility at Chennai, in HTL Ltd., a subsidiary with capacity of 4m fkm.
  • 2017: Railway Business vertical won its first two significant orders from Eastern Dedicated Freight Corridor and Western Dedicated Freight Corridor.
  • 2018: Capacity of Goa manufacturing facility expanded to 8m fkm.
  • 2018: Setting up of R&D Division for Design & Development including WiFi Network products/solutions, Radios etc.
  • 2018: Capacity of Chennai plant expanded to 7m fkm.
  • 2019: Setting up of Optical Fiber Plant in Hyderabad with 6.4m fkm capacity. Expected to be completed by the end of 2019.
  • 2019: Acquired 90% stake in a technology focussed company, Raddef Private Limited which has expertise in RF and Microwave domain embedded systems, Communication systems, RADAR and Surveillance systems.
  • 2020: Starts commercial production of Optical Fiber Cables at Hyderabad facility.
  • 2020: Collaborated with VVDN Technologies.
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