HFCL Ltd

HFCLTelecom - Infrastructure
62.10+0.00 (+0.00%)
As on 21 Jan 2026, 08:45 amMarket Closed

Fundamental Score

...

HFCL Ltd Share Price Live NSE/BSE

No data
High
0.00
Low
0.00
Volume
0
Change
+0.00%

Profitability Metrics

Poor

Return on Equity

4.42%
Poor

Return on Capital Employed

7.55%
Good

Operating Profit Margin (5Y)

12.70%
Poor

Dividend Yield

0.14%

Valuation Metrics

Poor

Price to Earnings

368.75x

Market Capitalization

10.27K (Cr)

Industry P/E

19.49x

Growth Metrics

Poor

YoY Quarterly Profit Growth

-8.16%
Poor

YoY Quarterly Sales Growth

-4.60%
Poor

Sales Growth (5Y)

1.15%
Poor

EPS Growth (5Y)

-7.02%
Poor

Profit Growth (5Y)

-4.83%

Financial Health

Good

Debt to Equity

0.38x
Poor

Interest Coverage

1.27x
Poor

Free Cash Flow (5Y)

-507.36 (Cr)

Ownership Structure

Average

Promoter Holding

30.02%
Average

FII Holding

7.48%
Good

DII Holding

13.57%
Poor

Pledged Percentage

56.93%
Market-cap Classification
Mid-cap
Balance of growth potential and stability.
30.02%
Promoter Holding
10.27K (Cr)
Market Cap

Labels (e.g., "Excellent", "Good") are peer-based vs industry/sector averages — data-only, not advice

Market Data Analysis & Educational Insights

Educational evaluation of HFCL across key market metrics for learning purposes.

Positive Indicators

0 factors identified

No significant strengths identified in current analysis.

Risk Factors

12 factors identified

Below-Average Return on Equity (4.42%)

Observation: Returns on equity are below industry benchmarks.

Analysis: ROE <10% may indicate inefficient capital utilization. Consider monitoring for operational improvements and management effectiveness.

Suboptimal ROCE (7.55%)

Observation: Returns on capital employed are below expectations.

Analysis: ROCE <10% suggests potential inefficiencies in capital allocation. Review business model and competitive positioning.

Premium Valuation Risk (P/E: 368.75x)

Observation: High valuation multiples may limit upside potential.

Analysis: Elevated P/E ratios require strong growth execution to justify current valuations. Consider entry timing carefully.

Limited Growth History (1.15% CAGR)

Observation: Below-average 5-year sales growth trajectory.

Analysis: Low sales CAGR may indicate mature markets or limited growth opportunities. Assess future growth catalysts.

Weak Earnings Growth (-7.02% CAGR)

Observation: Below-average 5-year EPS growth performance.

Analysis: Low EPS growth may not keep pace with inflation. Consider growth catalysts and competitive positioning.

Stagnant Profit Growth (-4.83% CAGR)

Observation: Limited 5-year profit growth trajectory.

Analysis: Low profit growth may indicate scalability challenges or market maturity. Assess transformation initiatives.

Weak Interest Coverage (1.27x)

Observation: Limited ability to service debt obligations from earnings.

Analysis: Low interest coverage raises concerns about financial stability. Monitor cash flow and debt reduction plans.

Negative Free Cash Flow (₹-507.36 Cr over 5Y)

Observation: Cash outflows exceed inflows, indicating capital intensity or working capital issues.

Analysis: Negative FCF requires analysis of capital expenditure cycle and working capital management efficiency.

High Share Pledging Risk (56.93%)

Observation: Significant promoter share pledging creates potential overhang.

Analysis: High pledging levels may create selling pressure during market downturns or margin calls.

Very Low ROE

Observation: Poor capital utilization and shareholder returns.

Analysis: ROE below 5% suggests significant inefficiencies in capital deployment.

High P/E Ratio

Observation: Stock may be overvalued relative to earnings.

Analysis: P/E above 30 requires strong growth execution to justify current valuations.

Very High P/E Ratio

Observation: Significant overvaluation risk present.

Analysis: Extremely high P/E ratios indicate potential bubble territory and high downside risk.

Financial Statements

Comprehensive financial data for HFCL Ltd

About HFCL

Business Overview

HFCL Limited manufactures and sells telecom products in India and internationally. The company offers optical fiber cables, such as underground, aerial, microduct, FTTH, and micromodule cables; telecommunication products, including unlicensed band backhaul radios, Wi-Fi access points, routers, managed switches, antennas, network management solutions, and 5g product portfolio; defence product comprising electronic fuzes, electro optics, high capacity radio relay, software defined radios, and ground surveillance radars; and passive networking components, such as high density cabinets, joint closures, optical splitters, aerial cable accessories, fiber optic cable assemblies, and copper cable assemblies. It also provides network solutions for public telecommunications, defence and railway communications, and system integration services. The company was formerly known as Himachal Futuristic Communications Limited and changed its name to HFCL Limited in October 2019. HFCL Limited was incorporated in 1987 and is based in New Delhi, India.

Company Details

Symbol:HFCL
Industry:Telecom - Infrastructure
Sector:Telecom - Infrastructure

Key Leadership

Mr. Mahendra Nahata
MD & Wholetime Director
Mr. Manoj Baid
President, Company Secretary & Compliance Officer
Mr. Vijay Raj Jain
Chief Financial Officer

HFCL Stock Details & Analysis

Key Financial Metrics

Return on Equity (ROE)4.42%
Return on Capital Employed7.55%
Operating Profit Margin (5Y)12.70%
Debt to Equity Ratio0.38
Interest Coverage Ratio1.27

Growth & Valuation

Sales Growth (5Y)1.15%
Profit Growth (5Y)-4.83%
EPS Growth (5Y)-7.02%
YoY Quarterly Profit Growth-8.16%
YoY Quarterly Sales Growth-4.60%

Frequently Asked Questions

What is the current price of HFCL Ltd (HFCL)?

As of 21 Jan 2026, 08:45 am IST, HFCL Ltd (HFCL) is currently trading at ₹62.10. The stock has a market capitalization of ₹10.27K (Cr).

Is HFCL share price Overvalued or Undervalued?

HFCL is currently trading at a P/E ratio of 368.75x, compared to the industry average of 19.49x. Based on this relative valuation, the stock appears to be Overvalued against its sector peers.

What factors affect the HFCL Ltd share price?

Key factors influencing HFCL's price include its quarterly earnings growth (Sales Growth: -4.60%), raw material costs, government infrastructure spending, and institutional flows (FII/DII holding).

Is HFCL Ltd a good stock for long-term investment?

HFCL Ltd shows a 5-year Profit Growth of -4.83% and an ROE of 4.42%. Long-term investors should consider these fundamentals alongside the debt-to-equity ratio of 0.38 before investing.

How does HFCL Ltd compare with its industry peers?

HFCL Ltd competes with major peers in the Telecom - Infrastructure. Investors should compare HFCL's P/E of 368.75x and ROE of 4.42% against the industry averages to determine its competitive standing.

What is the P/E ratio of HFCL and what does it mean?

HFCL has a P/E ratio of 368.75x compared to the industry average of 19.49x. The Price-to-Earnings (P/E) ratio is calculated by dividing the current share price by earnings per share (EPS). This means investors are paying ₹369 for every ₹1 of annual earnings.

How is HFCL performing according to Bull Run's analysis?

HFCL has a Bull Run fundamental score of N/A/100, which indicates concerns that require careful analysis. This comprehensive rating is based on 15+ financial parameters including profitability, growth metrics, and valuation ratios.

What sector and industry does HFCL belong to?

HFCL operates in the Telecom - Infrastructure industry. This classification helps understand the competitive landscape and sector-specific trends affecting HFCL Ltd.

What is Return on Equity (ROE) and why is it important for HFCL?

HFCL has an ROE of 4.42%, which suggests challenges in generating returns from shareholders' equity. Return on Equity measures how efficiently HFCL Ltd generates profits from shareholders' equity.

How is HFCL's debt-to-equity ratio and what does it indicate?

HFCL has a debt-to-equity ratio of 0.38, which indicates moderate leverage that should be monitored. A ratio below 1.0 generally indicates conservative financing.

What is HFCL's dividend yield and is it a good dividend stock?

HFCL offers a dividend yield of 0.14%, which means you receive ₹0.14 annual dividend for every ₹100 invested.

How has HFCL grown over the past 5 years?

HFCL has achieved 5-year growth rates of: Sales Growth 1.15%, Profit Growth -4.83%, and EPS Growth -7.02%.

What is the promoter holding in HFCL and why does it matter?

Promoters hold 30.02% of HFCL shares, with 56.93% of promoter shares pledged. High promoter holding often indicates strong management confidence.

What is HFCL's market capitalization category?

HFCL has a market capitalization of ₹10266 crores, placing it in the Mid-cap category.

How volatile is HFCL stock?

HFCL has a beta of N/A. A beta > 1 suggests the stock is more volatile than the market, while a beta < 1 suggests it is less volatile.

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

HFCL has a 52-week high of ₹N/A and low of ₹N/A.

What is HFCL's operating profit margin trend?

HFCL has a 5-year average Operating Profit Margin (OPM) of 12.70%, indicating the company's operational efficiency.

How is HFCL's quarterly performance?

Recent quarterly performance shows YoY Sales Growth of -4.60% and YoY Profit Growth of -8.16%.

What is the institutional holding pattern in HFCL?

HFCL has FII holding of 7.48% and DII holding of 13.57%. Significant institutional holding often suggests professional confidence in the stock.