HFCL shares in focus today as firm wins Rs 222-crore order from Reliance Jio

Shares of Himachal Futuristic Communications Limited (HFCL Ltd) were in focus on Tuesday after the domestic telecom gear maker bagged a Rs 222 crore order from Reliance Jio and its sister concern Reliance Projects & Property Management Services Limited for transmission equipment. Shares of the telecom gear maker were trading flat at Rs 64.82 against the previous close of Rs 65.21 on BSE. They hit an intraday high of Rs 65.50 in the opening trade.

Earlier, HFCL stock opened flat at Rs 65.50 on BSE. HFCL shares have lost 1.64 per cent in one year and fallen12 per cent since the beginning of this year. Market cap of HFCL stood at Rs 8,930 crore on BSE. Total 1.25 lakh shares of the firm changed hands amounting to a turnover of Rs 81.02 lakh.

The stock hit a 52-week low of Rs 51.55 on June 20, 2022 and a 52 week high of Rs 88.80 on December 9, 2022. In terms of technicals, the relative strength index (RSI) of  HFCL stock stands at 50.4, signaling it's trading neither in the oversold nor in the overbought zone. The stock has a beta of 1.3, indicating very high volatility in a year. HFCL shares are trading higher than the 50 day moving averages but lower than 5 day, 20 day, 100 day and 200 day moving averages.

The company has won an order worth Rs 179.24 crore from Reliance Projects & Property Management Services Limited for supplying various types of Optical Fiber Cables by October.

Reliance Jio has placed an order worth Rs 42.71 with HFCL to supply indigenously designed, developed and manufactured 700 megabits per second (Mbps) and 1 gigabit per second (Gbps) point-to-point Unlicensed Band Radios by July.

"...the Company, along with its material subsidiary, HTL Limited, has received the Purchase Orders aggregating to about Rs 221.95 Crore, consisting Purchase Orders of about Rs 179.24 crore from Reliance Projects & Property Management Services Limited for the supply of Optical Fiber Cables and of Rs 42.71 crores approximately from Reliance Jio Infocomm Limited for the supply of indigenously designed, developed and manufactured 700 MBPs and 1 GBPS Point to Point Unlicensed Band Radios (UBRs)," HFCL said in a filing to the bourses.

HFCL Limited is primarily engaged in manufacturing of telecommunication equipment, optical fiber cables and intelligent power systems. The company is a manufacturer of optical fiber cables, optical transport, power electronics and broadband equipment for the telecommunication industry. It provides solutions for building wireless and optical telecommunication networks, such as optical transport networks (DWDM), rural global system for mobile communications (GSM) networks, broadband access networks, radio backhaul, fiber to the home and in-building solutions.