Is HFCL a good quality company?

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

Is HFCL 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 .

What is HFCL share price return in the past 10 years ?

HFCL Ltd share price has appreciated 26.5% annually (CAGR) over the past ten years.

Is HFCL 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

HFCL Ltd Stock Analysis

Item: HFCL Ltd
Rating: 3
Author: MoneyWorks4me Rating

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

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BSE Share Price 29-Sep-2023 18:02
77.07 0.68 (0.89%)

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

Standalone Basis ^P Consolidated Basis ^P

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

Value Creation ⓘ Value Creation Index Colour Code Guide ⓘ
	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	TTM
ROCE % ⓘ	16.4%	21%	19.5%	11.1%	12.4%	13.1%	13%	12.9%	12.5%	9.1%	-
Value Creation Index ⓘ	0.2	0.5	0.4	-0.2	-0.1	-0.1	-0.1	-0.1	-0.1	-0.3	-

Growth Parameters ⓘ Growth Parameters Colour Code Guide ⓘ
Sales ⓘ	2,019	2,551	2,570	2,016	3,066	4,366	3,547	4,106	4,286	4,396	4,325
YoY Gr. Rt. %	-	26.4%	0.7%	-21.5%	52.1%	42.4%	-18.8%	15.8%	4.4%	2.6%	-
Adj EPS ⓘ	1.2	1.8	1.8	1	1.2	1.5	1.7	1.7	2.1	1.8	1.8
YoY Gr. Rt. %	-	49.6%	1.1%	-45.4%	24%	16.9%	14.5%	0.6%	24%	-15%	-
BVPS (₹) ⓘ	6.1	7.5	7.4	8.4	9.7	11.2	12.7	14.5	19.8	21.5	23.5
Adj Net Profit ⓘ	150	224	227	123	154	184	214	215	284	242	256
Cash Flow from Ops. ⓘ	101	119	-79.9	138	183	-16.4	208	82.5	140	185	-
Debt/CF from Ops. ⓘ	2.8	2.4	-6.6	3.6	2.3	-33.7	2.9	9.7	4.4	4.2	-

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%
BVPSⓘ	15%	17.4%	19.2%	8.6%
Share Price	26.5%	30.8%	69.6%	5.9%

Key Financial Parameters ⓘ Performance Ratio Colour Code Guide ⓘ
	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	TTM
Return on Equity % ⓘ	19.4	24.2	23.6	12.6	13.6	13.9	13.8	12.2	12.4	8.5	7.9
Op. Profit Mgn % ⓘ	9.5	11.6	12.5	9	8.2	7.8	11.5	11.4	12.4	10.6	11
Net Profit Mgn % ⓘ	7.5	8.8	8.9	6.1	5	4.2	6	5.2	6.6	5.5	5.9
Debt to Equity ⓘ	0.3	0.3	0.6	0.5	0.4	0.4	0.4	0.4	0.2	0.3	-
Working Cap Days ⓘ	155	162	201	329	236	200	289	318	337	325	0
Cash Conv. Cycle ⓘ	42	29	61	157	101	67	87	82	87	107	0

Recent Performance Summary

No data to display

Return on Equity has declined versus last 3 years average to 7.90%

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 4.64%

Latest Financials - HFCL Ltd.

	Standalone	Consolidated
TTM EPS (₹)	1.8	2.2
TTM Sales (₹ Cr.)	4,325	4,687
BVPS (₹.) ⓘ	23.5	24.5
Reserves (₹ Cr.) ⓘ	3,221	3,362
P/BV ⓘ	3.27	3.14
PE ⓘ	43.13	34.64

From the Market
52 Week Low / High (₹)	55.75 / 88.80
All Time Low / High (₹)	5.95 / 2552.90
Market Cap (₹ Cr.)	11,012
Equity (₹ Cr.)	142.9
Face Value (₹)	1
Industry PE ⓘ	48.4

Management X-Ray of HFCL :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged ^*

44.72

11.18

0.00

44.72

44.68

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

Valuation of HFCL

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Price Chart

Price to Earnings

Enterprise Value to EBIT

Price to Book-Value

Price to Sales

Dividend History

Analyst's Notes

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Key Ratios of HFCL

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

News

HFCL Ltd FAQs

What is the share price of HFCL ?

Company share prices are keep on changing according to the market conditions. The closing price of HFCL on 29-Sep-2023 18:02 is : 77.07.

What is the market cap of HFCL ?

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 29-Sep-2023 18:02 the market cap of HFCL stood at ₹ 11,011.6.

What is the PE ratio of HFCL ?

The latest PE ratio of HFCL as of 29-Sep-2023 18:02 is 43.13.

What is the PB ratio of HFCL?

The latest PB ratio of HFCL as of 29-Sep-2023 18:02 is 3.27

What is the 52-week high and low of HFCL ?

The 52-week high of HFCL is ₹ 88.80 and the 52-week low is ₹ 55.75.

What is the TTM revenue of HFCL ?

The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of HFCL is ₹ 4,325 ( 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.