HFCL Share Price Soars to All-time High in Just Four Months
In a surprising turn of events, HFCL’s share price has reached its highest level in 23 years in just four months. The company’s stock was stuck in upper circuit on Friday.
According to brokerage firm Ventura, in July 2022, HFCL was estimated to report revenue of ₹6,673 crore, EBITDA of ₹951 crore, and net profit of ₹552 crore in FY24. However, the company’s financial performance did not meet expectations due to a decline in demand for optical fiber cables worldwide. On Friday, June 14, 2024, HFCL stock closed at ₹117.30, up 4.52 percent.
The brokerage firm projects that HFCL’s revenue will reach ₹10,000 crore by 2027. By 2027, the company’s EBITDA is expected to increase to ₹1,581 crore and net profit to ₹942 crore.
Experts suggest that the demand for fiber-to-home and data center solutions is growing rapidly. The demand for products related to telecom transmission is also increasing. Additionally, there is a rising demand for electro-optics, ground surveillance radars, and night vision equipment in the defense sector. Companies like HFCL could benefit from this trend.
HFCL may invest ₹1,400 crore in expanding its business in the coming years. According to Ventura’s analysts, HFCL’s share could reach ₹163 in the coming days. This has led to a buy rating on the stock. Interestingly, the Reliance Group also has a stake in the company.
Over the past year, HFCL’s share price has risen from ₹61.52 to its current level. On February 27, 2024, HFCL stock was trading at ₹117.75. In other words, in the last four months, the company’s shares have given investors a return of over 91 percent.
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