HFCL Ltd (NSE: HFCL) reported a slight increase in its share price, closing at ₹153.47, up 0.38% from the previous day’s close of ₹152.89. The stock opened at ₹155.89 and reached an intraday high of ₹163.40 while dipping to a low of ₹155.61 during the trading session.
Main Points
HFCL has shown a positive trend over the past week, with its share price climbing by 7.36%. In the last month, the stock has appreciated by 14.93%, indicating a strong recovery from previous lows. Over the past six months, HFCL’s share price has surged by 70.28%, and it has gained 107.18% over the last year.
For investors looking to navigate HFCL’s stock movements this week, understanding key support and resistance levels is vital. Based on recent trading patterns and technical analysis, here are the important levels to keep an eye on:
- Resistance Levels:
- R1: ₹160.66
- R2: ₹163.40
- R3: ₹165.00
- Support Levels:
- S1: ₹150.34
- S2: ₹145.00
- S3: ₹140.00
These levels will help traders identify potential entry or exit points based on market movements.
As of today, HFCL has a market capitalization of approximately ₹22,140.70 crore. The company’s price-to-earnings (P/E) ratio stands at 59.36, with an earnings per share (EPS) of ₹2.59. The price-to-book (P/B) ratio is reported at 5.51, reflecting investor expectations about future growth.
In its latest quarterly results for Q1 FY25, HFCL reported revenues of ₹1,158 crore, which represents a quarter-over-quarter decline of 12.66% but a year-over-year increase of 16.38%. The company’s EBITDA stood at ₹185 crore, with an EBITDA margin of 16%.
Market Sentiment and Future Prospects
The sentiment around HFCL remains cautiously optimistic as the company continues to invest heavily in research and development for telecom products and defense equipment. Recently, HFCL was recognized by the European Commission as the only Indian company exempt from anti-dumping duties on optical fiber cables, enhancing its competitive position in Europe.
Mahendra Nahata, Managing Director of HFCL, emphasized that India’s political stability and growing demand for high-speed internet and telecommunications infrastructure present significant opportunities for growth in both domestic and international markets.
Challenges Ahead
Despite the positive outlook, HFCL faces challenges such as revenue contraction in recent quarters and increasing operational costs related to employee expenses and interest payments, which accounted for 7.85% and 3.3% of operating revenues respectively in FY24.The global optical fiber cable market is currently experiencing a slowdown; however, it is expected to rebound later this fiscal year, which could positively impact HFCL’s revenue streams.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
