MoneyWorks4Me

HFCL Ltd (HFCL)

Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating BSE: 500183 NSE: HFCL Telecom-Infrastructure | Small Cap | HFCL Share Price

₹235 1.40 (0.60%)

As on 11-Sep'26 15:18

HFCL Ltd (HFCL)

Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating BSE: 500183 NSE: HFCL Telecom-Infrastructure | Small Cap | HFCL Share Price

₹235 1.40 (0.60%)

As on 11-Sep'26 15:18

Key Metrics
Valuation Multiples
Market Cap
₹35,755 Cr.
Current Price
₹235
52-Week Low / High
₹60 / 257
TTM EPS
₹3.7
TTM Sales
₹5,993 Cr.
Book Value per Share
₹33.6
P/E Ratio
62.44
Higher than its 5-year historical median
Industry PE
22
Price to Book (P/B)
6.96
Higher than its 5-year historical median
Price to Sales (P/S)
5.97
Higher than its 5-year historical median
EV/EBITDA
30.23
Higher than its 5-year historical median
Dividend Yield
0.09%
Profitability Efficiency
Return on Equity (ROE)
7.35%
Underperforms industry median
Return on Capital Employed (ROCE)
10.86%
Underperforms industry median
Return on Assets (ROA)
4.01%
Operating Profit Margin
15.4%
Net Profit Margin
6.66%
Gross Profit Margin
11.8%
Growth Momentum
1-yr vs 3-yr growth
Sales Growth (1 Year)
Improving versus 3-year growth rate
19.3%
Operating Profit Growth (1 Year)
Improving versus 3-year growth rate
69.6%
Net Profit Growth (1 Year)
Improving versus 3-year growth rate
90.14%
Asset Quality
Promoter Holding
28.29%
Pledged shares (%) of Promoter's holding (%)
2.08%
Reserves
₹4,983 Cr.
Equity
₹153.1 Cr.
Face Value
₹1
All Time Low / High
₹5.95 / 2552.90

HFCL stock performance

Key Ratios
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Check Before You Invest

Quality

Somewhat Good

Valuation

Overvalued

Price Trend

Strong
Q.1 Is HFCL Ltd a good quality company?
HFCL Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

How does HFCL Ltd performance compare with that of its Peers?
Q.1 Revenue growth of HFCL Ltd vs industry peers?
HFCL Ltd revenue CAGR is 1.36%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Q.1 Promoter shareholding and pledge status of HFCL Ltd?
Promoters hold 28.29% of the HFCL Ltd, with 2.08% of their stake pledged, indicating low pledge risk.
Q.1 Stock return of HFCL Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 30.7% based on the current price.

10 Year X-Ray :

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

Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26TTM
ROCE % 12.3%16.7%20.3%19.7%18%17.1%12.9%12.6%7.9%9.2%-
Value Creation
Index
-0.10.20.50.40.30.30.0-0.1-0.4-0.3-

Growth Parameters

Sales 2,0163,0664,3663,5474,1064,2864,3964,0753,7954,5285,346
Sales YoY Gr.-52.1%42.4%-18.8%15.8%4.4%2.6%-7.3%-6.9%19.3%-
Adj EPS 11.21.51.71.72.11.82.11.31.53.1
YoY Gr.-24%16.9%14.5%0.6%24%-15%19.9%-40.3%19.1%-
BVPS (₹) 8.49.711.212.714.519.821.526.527.530.932.1
Adj Net
Profit
123154184214215284242304182230474
Cash Flow from Ops. 138183-16.420882.5140184-111431-481-
Debt/CF from Ops. 3.62.3-33.72.99.74.44.2-7.42.9-3.4-

CAGR

9 Years 5 Years 3 Years 1 Years
Sales 9.4%2%1%19.3%
Adj EPS 4.6%-2.1%-5.2%19.1%
BVPS15.5%16.4%12.8%12.5%
Share Price 30.1% 25.7% 45% 234.3%

Key Financial Parameters

Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26TTM
Return on
Equity %
12.613.613.913.812.212.48.58.94.75.39.9
Op. Profit
Mgn %
98.27.811.511.412.410.611.91113.417
Net Profit
Mgn %
6.154.265.26.65.57.54.85.18.9
Debt to
Equity
0.50.40.40.40.40.20.30.20.30.4-
Working Cap
Days
329236200289318337325392477453208
Cash Conv.
Cycle
15510167878287107142153136101

Valuation of HFCL - Consolidated

YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
mw4me loader

YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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Analyst's Notes

data not found
No data found!

Management X-Ray

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *44.4944.5046.2047.6149.721.101.151.151.152.08
* Pledged shares as % of Promoter's holding (%)

Financials

PARTICULARSMar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26
Sales2,1313,2274,7383,8394,4234,7274,7434,4654,0654,949
Operating Expenses + 1,9392,9554,3273,3793,8734,0774,1253,8843,6164,188
Manufacturing Costs9921,2611,6051,6541,0131,4221,0961,190731564
Material Costs6411,3912,3561,3092,4312,1372,4432,0882,2672,706
Employee Cost 152168200224253311348351364445
Other Costs 153134165191177208237255253472
Operating Profit 193273411460550650619582449762
Operating Profit Margin (%) 9.0%8.4%8.7%12.0%12.4%13.8%13.0%13.0%11.0%15.4%
Other Income + 213547563543471015865
Exceptional Items 0-200-4-60000
Interest 626492115175166152147185242
Depreciation 2223274269788382106157
Profit Before Tax 124220339358337442431454217428
Tax 149107121911161131174398
Profit After Tax 124172232237246326318338173329
PAT Margin (%) 5.8%5.3%4.9%6.2%5.6%6.9%6.7%7.6%4.3%6.7%
Adjusted EPS (₹)1.01.41.71.81.92.42.32.31.22.0
Dividend Payout Ratio (%)0%4.40%5.80%0%8.10%7.60%8.70%8.70%8.10%9.80%
PARTICULARSMar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26

Equity and Liabilities

Shareholders Fund + 9641,1611,4291,6571,9012,7973,0783,9514,0784,890
Share Capital 124124127128128137138144144153
Reserves 8401,0371,3021,5281,7722,6592,9403,8073,9344,737
Debt +4483425536698387118589071,3871,650
Long Term Debt268141134201251121110169390390
Short Term Debt1802014194685885907477389971,260
Minority Interest2-22-10-072037444058
Trade Payables4575638658151,7481,0108788081,0791,007
Others Liabilities 2824263786767156296237779631,263
Total Liabilities 2,1532,4703,2143,8175,2095,1665,4736,4877,5468,868

Fixed Assets

Net Fixed Assets +1881962385045085285486528521,218
Gross Block4654925578218869551,0501,2161,5072,014
Accumulated Depreciation277296318316378427501564656796
CWIP 210863436108268469602486
Investments 50556058415570194158135
Inventories2452142653444355737587748991,416
Trade Receivables1,1791,1821,4721,6102,6111,8961,8862,2151,8922,212
Cash Equivalents 97132159192306528323336491468
Others Assets 3906819351,0751,2721,4771,6201,8462,6532,932
Total Assets 2,1532,4703,2143,8175,2095,1665,4736,4877,5468,868
PARTICULARSMar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26
Cash Flow From Operating Activity + 13620734172145205235-45396-378
PBT 124222339358337442431454217428
Adjustment 7574138168249227212198276421
Changes in Working Capital -6-6-415-263-423-402-309-577-95-1183
Tax Paid -56-83-28-91-18-61-99-120-2-44
Cash Flow From Investing Activity + -25-30-150-167-165-458-44-449-518-324
Capex -23-41-177-168-104-182-340-410-408-345
Net Investments -5-20-3-55-252253-45-12230
Others 313274-6-2344611-9
Cash Flow From Financing Activity + -114-11667-725248-145454170669
Net Proceeds from Shares 0000060633531551
Net Proceeds from Borrowing 000000059221-0
Interest Paid -78-64-91-111-174-156-147-157-166-217
Dividend Paid 00-9-150-19-24-29-29-14
Others -36-53168120199-18224227143350
Net Cash Flow -361-49-15-546-4047-33
PARTICULARSMar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26
Ratios
ROE (%)13.7116.1617.9415.3813.8413.8710.829.64.327.35
ROCE (%)12.9318.0323.4421.4519.6219.0415.3813.437.6410.86
Asset Turnover Ratio1.031.411.671.090.980.910.890.750.580.6
PAT to CFO Conversion(x)1.11.20.150.730.590.630.74-0.132.29-1.15
Working Capital Days
Receivable Days189.90132.70102.30146.50174.20174145.50167.60184.40151.30
Inventory Days43.2025.8018.4028.9032.1038.9051.2062.6075.1085.40
Payable Days271.30133.80110.60234.20192.50235.60141.10147.30151.80140.70

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Announcements

HFCL Ltd FAQs

The current trading price of HFCL on 11-Sep-2026 15:18 is ₹235.0.

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 10-Sep-2026 the market cap of HFCL stood at ₹35,754.9 Cr

The latest P/E ratio of HFCL as of 10-Sep-2026 is 75.37.

The latest P/B ratio of HFCL as of 10-Sep-2026 is 7.29.

The 52-week high of HFCL is ₹257.0 and the 52-week low is ₹59.83.

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of HFCL is ₹5,346 ( Cr.) .

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

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

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

About HFCL Ltd

HFCL is a leading technology enterprise with operations in high end Telecom and Defence Equipment, Optical Fiber, Optical Fiber Cables and Passive Connectivity Solutions (through its subsidiary, HTL) and also creating digital networks for telcos, enterprises and governments. Backed by deep domain expertise, robust manufacturing capabilities, and a growing global footprint, the company is focused on building high-performance, future-ready connectivity solutions aligned with evolving market needs and India’s self-reliance goals. The company’s strong R&D expertise coupled with its global system integration services and decades of experience in Fiber optics enable it to deliver innovative digital network solutions required for the most advanced networks.

The company offers a holistic portfolio of products and solutions designed to power advanced connectivity across the telecom and defence sectors spanning optical fiber, optical fiber cables, passive connectivity solutions, wireless access equipment, defence-grade electronics, coastal and surveillance radars, and turnkey network deployments. HFCL addresses the entire value chain of communication networks. This comprehensive capability positions HFCL as a trusted, technology-led partner in building future-ready infrastructure. It has developed capabilities to provide premium quality Optical Fiber and Optical Fiber Cables, state-of-the-art Telecom Products including IP-MPLS Routers, Backhaul Radios, Wi-Fi Systems and Defence products viz. Thermal Weapon Sights, Electronic Fuzes, High-Capacity Radio Relay and Surveillance Radars of different types.

With a strong manufacturing base and strategically located facilities across India, HFCL has built robust operational capabilities to support large-scale production. The Company’s focus on backward integration enhances control over quality, cost, and supply chain efficiency. This operational strength is complemented by an expanding commercial presence across global markets, enabling it to serve a diverse and growing customer base.

Business area of the company

HFCL is a leading technology enterprise with operations in high end Telecom and Defence Equipment, Optical Fiber and Optical Fiber Cables and also creating digital networks for Telcos, Enterprises and Defence Forces. Over the years, HFCL has emerged as a trusted partner offering sustainable high-tech solutions with a commitment to providing the latest technological products to its customers.

Products

  • Fiber and Fiber Optic Cables: It offers a wide range of high-quality fiber and fiber optic cables suitable to all network requirements that are highly customizable, interoperable and are delivered within shortest period, globally.
  • Telecommunication Products: Its wired and wireless access solutions, built on open standards are customizable to every network needs. Enable end-to-end connectivity for small-to-medium-to-large deployments.
  • DefenceL HFCL designs and delivers customized products / solutions for Defence services, institutions, and the projects of National Security significance.
  • Passive Networking Components: It builds future ready high bandwidth networks for its customers with its wide range of connectivity solutions.

Network Solutions

The company designs, integrates, and deploy high-quality network solutions for different deployment environments, empowering global and end-to-end connectivity ecosystems. Having deployed extensive public networks and communication systems for defence & railways makes it one of the preferred network project implementation partners.

  • Public Telecommunications Network Solution
  • Defence Communications Solution
  • Railway Communications Solution
  • System Integration Services

Milestones and achievements

1987

  • Incorporated as a telecom equipment manufacturer.

1990s

  • Expanded business operations.
  • Set up a manufacturing facility for wireless-based technology products.
  • Set up OFC manufacturing facility at Goa.
  • Set up an EPC division to create communication network for various telecom operators reaping the benefits of liberalisation and the telecom revolution.

2000s

  • Achieved organic and inorganic growth along with portfolio expansion.

2010s

  • Consolidated the business following the global recession through debt, equity and business restructuring.
  • Ushered in revival and growth by expanding manufacturing capacities and strengthening network solutions capabilities.
  • Expanded portfolio of products and solutions and entered new geographies to tap new customers.
  • Created defence and railway communication divisions.
  • Set up R&D facilities for telecom, OFC and defence.
  • Completed backward and horizontal integration (fiber reinforced plastic (FRP), aramid reinforced plastic (ARP) rods and passive connectivity solutions (PCS)).

2020-2024

  • Set up a greenfield facility for the manufacture of optic fiber with an annual capacity of 10 million fiber kilometre (fkm) as a backward integration measure.
  • Expanded the optical fiber cable capacities from 18.5 million fkm to 25.08 million fkm.
  • Commissioned a facility for the manufacture of wire harnesses (Automotive and Aerospace) at HTL Limited, a subsidiary.
  • Established three R&D centres in Bengaluru, Gurugram and Hyderabad.
  • Launched 5G lab-as-a-service, switches, the world's first open-source Wi-Fi 7 access point along with unified cloud network management systems (UcNMS).
  • Launched intermittently bonded ribbon fiber cables.
  • Became the first Indian company to introduce indigenous 5G fixed wireless access customer premises equipment (FWA CPE).
  • Launched IP/MPLS (internet protocol multi protocol label switching) router.
  • Launched cutting-edge electronic fuzes and surveillance radars.
  • Received approval as a 'Trusted Source' from the National Security Council Secretariat (NSCS) for supplying telecom equipment in India.
  • Completed broadband connectivity in all gram panchayats of Jharkhand and Punjab under the BharatNet Project.
  • Collaborated with global players including Wipro, Qualcomm, CommAgility, VVDN Technologies, IP Infusion Inc., NXP, Aprecomm Metanoia., Capgemini, Olatech, AnexGATE and Xilinx, among others.
  • Raised funds via qualified institutional placements and the preferential issue of warrants.

2024-25

  • Inauguration of the Tata Aircraft Complex in Vadodara, in October 2024, which will domestically produce 40 of the 56 C-295 aircraft, marking significant progress towards Atmanirbharta.
  • The company’s Hyderabad Fiber Plant achieved several key quality and compliance milestones reinforcing its commitment to global standards and customer satisfaction. ISO 10002:2018 for Customer Satisfaction & Complaints Management, ISO/IEC 27701:2019 for Privacy Information Management, Fire resistance certification and CE/UKCA compliance for cable products, strengthening its market access in the UK and European regions.
  • The company upgraded its Business Continuity Management System to ISO 22301:2019 ensuring operational resilience.
  • The successful development of indigenous Multi-Protocol Label Switching (MPLS) Routers, specifically designed for 5G backhaul and enterprise networks. Engineered for rugged environments and dual-use applications across civil and defense sectors.
  • HFCL became the first Indian company to develop and commercially launch 5G FWA CPE, marking a significant milestone in the evolution of last-mile wireless connectivity in the 5G era.

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