HFCL Ltd - Stock Valuation and Financial Performance

BSE: 500183 | NSE: HFCL | Telecom-Infrastructure | Small Cap

HFCL Share Price

91.90 -1.00 -1.08%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on HFCL

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

HFCL stock performance -

mw4me loader
P/E Ratio (SA):
54.63
Market Cap:
13,386.6 Cr.
52-wk low:
55.8
52-wk high:
117.8

Is HFCL Ltd an attractive stock to invest in?

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 Weak which suggest that the price of HFCL Ltd is likely to Fall 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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 16.4%21%19.5%11.1%12.4%13.1%13%12.9%12.5%9.1%-
Value Creation
Index
0.20.50.4-0.2-0.1-0.1-0.1-0.1-0.1-0.3-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2,0192,5512,5702,0163,0664,3663,5474,1064,2864,3964,160
Sales YoY Gr.-26.4%0.7%-21.5%52.1%42.4%-18.8%15.8%4.4%2.6%-
Adj EPS 1.21.81.811.21.51.71.72.11.81.7
YoY Gr.-49.6%1.1%-45.4%24%16.9%14.5%0.6%24%-15%-
BVPS (₹) 6.17.57.48.49.711.212.714.519.821.524.7
Adj Net
Profit
150224227123154184214215284242245
Cash Flow from Ops. 101119-79.9138183-16.420882.5140185-
Debt/CF from Ops. 2.82.4-6.63.62.3-33.72.99.74.44.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 9%7.5%7.4%2.6%
Adj EPS 4.3%7.3%2%-15%
BVPS15%17.4%19.2%8.6%
Share Price 27.5% 32% 53.3% 62.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
19.424.223.612.613.613.913.812.212.48.57.4
Op. Profit
Mgn %
9.511.612.598.27.811.511.412.410.69.8
Net Profit
Mgn %
7.58.88.96.154.265.26.65.55.9
Debt to
Equity
0.30.30.60.50.40.40.40.40.20.3-
Working Cap
Days
155162201329236200289318337325153
Cash Conv.
Cycle
4229611571016787828710778

Recent Performance Summary

No data to display

Return on Equity has declined versus last 3 years average to 7.40%

Sales growth has been subdued in last 3 years 7.41%

Net Profit has been subdued in last 3 years 1.97%

Sales growth is not so good in last 4 quarters at 0.36%

Latest Financials - HFCL Ltd.

Standalone Consolidated
TTM EPS (₹) 1.7 2
TTM Sales (₹ Cr.) 4,160 4,572
BVPS (₹.) 24.7 25.6
Reserves (₹ Cr.) 3,409 3,549
P/BV 3.77 3.62
PE 54.63 45.91
From the Market
52 Week Low / High (₹) 55.75 / 117.75
All Time Low / High (₹) 5.95 / 2552.90
Market Cap (₹ Cr.) 13,387
Equity (₹ Cr.) 144.1
Face Value (₹) 1
Industry PE 38.4

Management X-Ray of HFCL:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *11.180.0044.7244.7244.7244.6844.6844.6844.6844.68
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales2,0192,5512,5702,0163,0664,3663,5474,1064,2864,396
Operating Expenses 1,8322,3722,2501,8352,8144,0283,1543,6373,7593,929
Manufacturing Costs1,2381,4131,1939851,2561,5981,6431,0001,3971,062
Material Costs1683695785721,2872,1001,1462,2631,9132,372
Employee Cost 193203156132147177194216262280
Other Costs 233388323146124153171158187215
Operating Profit 187179320181252338394469528466
Operating Profit Margin (%) 9.3%7.0%12.4%9.0%8.2%7.7%11.1%11.4%12.3%10.6%
Other Income 14882419314855334449
Interest 34445860617890148133117
Depreciation 20342516161830545757
Exceptional Items 00-1100-200-400
Profit Before Tax 148190150124204291328296382342
Tax 000049107124739987
Profit After Tax 147190150124155184204223283255
PAT Margin (%) 7.3%7.4%5.9%6.1%5.1%4.2%5.7%5.4%6.6%5.8%
Adjusted EPS (₹)1.11.51.21.01.31.41.61.72.11.9
Dividend Payout Ratio (%)0%0%0%0%5%7%0%9%9%11%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 8391,0139181,0441,1981,4311,6331,8612,7262,963
Share Capital 204204124124124127128128137138
Reserves 6348087949201,0741,3031,5051,7322,5892,825
Minority Interest0000000000
Debt270268474403298514573728580734
Long Term Debt1831623322381111041501979584
Short Term Debt87105142165187410423531485650
Trade Payables1943074463925167417821,652934851
Others Liabilities 337235274266415368637686558533
Total Liabilities 1,6391,8232,1122,1052,4273,0543,6254,9274,7995,080

Fixed Assets

Gross Block493412391378389409640691727767
Accumulated Depreciation340290285267278292277324352402
Net Fixed Assets153122106111110117362368375365
CWIP 10111084312786243
Investments 36529651656671806585103
Inventories172263260218179192272306409584
Trade Receivables2553671,1191,1471,1831,4351,5462,5281,8041,784
Cash Equivalents 661367480108136181294505296
Others Assets6286385024837711,0201,1531,3391,5351,704
Total Assets 1,6391,8232,1122,1052,4273,0543,6254,9274,7995,080

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 101119-80138183-1620882140185
PBT 148190157124205291328296382342
Adjustment 1401721755272114124204170148
Changes in Working Capital -154-220-381-8-11-393-153-405-363-225
Tax Paid -32-23-31-31-83-28-91-13-48-79
Cash Flow From Investing Activity -105-44100-38-15-119-163-116-388-11
Capex -46-14-9-14-24-130-157-63-135-266
Net Investments -60-35770-200-54-238251
Others 1532-241110-61-154
Cash Flow From Financing Activity -28-61-34-103-12193-3940242-127
Net Proceeds from Shares 000000006063
Net Proceeds from Borrowing -4400000000
Interest Paid -24-40-47-65-69-71-83-145-134-116
Dividend Paid 00000-9-150-19-24
Others 0-2513-38-5217359185-21111
Net Cash Flow -3214-14-347-4267-547
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)21.2422.4716.2612.6213.831413.312.7612.338.95
ROCE (%)17.0619.2515.2212.3216.6520.2819.671817.0912.91
Asset Turnover Ratio1.441.511.450.981.361.591.060.960.880.89
PAT to CFO Conversion(x)0.690.63-0.531.111.18-0.091.020.370.490.73
Working Capital Days
Receivable Days494395200138109153181184149
Inventory Days20303342231524263041
Payable Days263248238268129109243196247137

HFCL Ltd Stock News

HFCL Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of HFCL on 28-Mar-2024 16:01 is ₹91.90.
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 28-Mar-2024 16:01 the market cap of HFCL stood at ₹13,386.6.
The latest P/E ratio of HFCL as of 28-Mar-2024 16:01 is 54.63.
The latest P/B ratio of HFCL as of 28-Mar-2024 16:01 is 3.77.
The 52-week high of HFCL is ₹117.8 and the 52-week low is ₹55.75.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of HFCL is ₹4,160 ( 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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