HFCL shares tank 8% today; is it time to book profit?

Shares of HFCL Ltd slumped 7.84 per cent in Wednesday's trade to hit a day low of Rs 104.05. At this price, the stock has slipped 11.64 per cent from its one-year high value of Rs 117.75, a level seen in the previous session. That said, it has gained 86.64 per cent compared to its 52-week low price of Rs 55.75, a level seen on March 28 last year.

Technical analysts largely suggested that investor can consider booking profit at current levels. Support on the counter could be seen at Rs 95 level.

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said traders can exit the counter at current levels.

DRS Finvest founder Ravi Singh said, "Resistance zone for HFCL will be at Rs 120, while support at Rs 95 level. One can consider booking profits."

The stock traded lower than the 5-day, 10-day and 20-day simple moving averages (SMAs) but higher than the 30-day, 50-, 100-, 150-day and 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 51.78. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 65.83 against a price-to-book (P/B) value of 4.71. Earnings per share (EPS) came at 1.71 with a return on equity (RoE) of 7.16.

HFCL is an India-based company that is primarily engaged in the 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 is also engaged in the development of a state-of-the-art drone detection radar, poised to be an important component of modern drone detection systems.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

Also read | Hot stocks on February 28: IREDA, Vodafone Idea, Tata Motors, YES Bank, Venus Pipes and more

Also read | Stock recommendations by analysts for February 28: Tata Communications, BEL and V-Guard

Also read | Rs 100 to Rs 498: This stock turned into a multibagger in three years, hit record high today