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HFCL Ltd Stock Analysis

Small Cap
Evaluated by 1637 users | BSE: 500183 | NSE: HFCL |
Telecommunication - Equipment

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...

Analysis of Financial Track Record

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 not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed -10.9%2.78%7.34%16.38%17.09%19.54%11.1%12.36%13.04%13.02%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1732616052,0192,5512,5702,0163,0664,3663,547
Y-o-Y Gr. Rt.-50.9%132.2%233.5%26.4%0.7%-21.5%52.1%42.4%-18.8%
Adjusted EPS (Rs.) -2.880.040.431.211.431.8311.241.431.66
Y-o-Y Gr. Rt.-NA975%181.4%18.2%28%-45.4%24%15.3%16.1%
Book Value per Share (Rs.) 6.474.655.096.127.527.418.429.6711.2312.72
Adjusted Net Profit -2854.653.5150177227123154182214
Net Op. Cash Flow (Rs. Cr.) 44-3.284.3101119-79.9138183-16.4208
Debt to Cash Flow from Ops 17.38-104.553.432.822.43-6.573.592.32-33.692.93
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
HFCL Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 39.9%6.8%20.7%-18.8%
Adjusted EPS NA3%18.4%16.1%
Book Value per Share 7.811.114.713.3
Share Price 15.1% 17.5% 11.7% 256%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) -33.390.77.8219.4119.123.5512.5913.6113.7213.83
Operating Profit Margin (%) -228.7612.1713.429.478.9412.58.978.227.7411.49
Net Profit Margin (%) -165.131.758.837.456.938.856.125.014.186.02
Debt to Equity 0.950.50.410.340.290.570.470.350.390.37
Working Capital Days 2,545775376155162201329236200289
Cash Conversion Cycle 1,3554371784229591551016787
Entity Percentage Holding
Promoters 42.05%
Institutions 2.26%
Non-Institutions 55.69%
Pledged *69.8568.7868.7868.7868.7867.8555.4847.3344.7244.72
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of HFCL Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that HFCL Ltd is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of HFCL Ltd's performance infers:

HFCL Ltd earnings have grown by 3%, whereas share price has appreciated 17.5% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of HFCL Ltd share prices over the last 10 years. Here is what we found out:

HFCL Ltd share price has appreciated 7.9% annually over the past ten years.

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

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.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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