HFCL stock jumps 5% on SIPB nod for 1,000-acre defence facility in Andhra Pradesh

Shares of HFCL Ltd gained 5 per cent in Friday’s trade after the company announced that it has secured approval from the Andhra Pradesh government for a 1,000-acre land allotment to set up defence manufacturing facilities.

HFCL shares rose as much as 4.7 per cent to hit the day’s high of Rs 73.66 on the BSE, against the previous close of Rs 70.29. The stock is still trading nearly 55 per cent below its 52-week high of Rs 171. 

In a regulatory filing, the telecom and defence equipment maker said the State Investment Promotion Board (SIPB) of Andhra Pradesh has cleared its proposal to establish facilities in Madakasira Mandal, Sri Sathya Sai district. The project will focus on manufacturing artillery ammunition shells, TNT filling, and multi-mode hand grenades, among other defence products.

“In Phase I, Andhra Pradesh Industrial Infrastructure Corporation Limited (APIICL) will allot 329 acres of land. In Phase II, an additional 671 acres will be allotted by APIICL,” HFCL said in its exchange filing.

The company said that the allotment “aligns with HFCL’s strategic growth objectives and will enable further expansion of its footprint in the Defence sector.”

On the technical charts, Adani shares are placed above their 5-, 10-, 20-, and 30-day simple moving averages (SMAs) but below 50-, 100-, 150- and 200-day SMAs. With a one-year beta of 2.0, the counter has exhibited high volatility over the past year.

Technical indicators show the Relative Strength Index (RSI) at 41.5, suggesting a mid-range momentum, while the Money Flow Index (MFI) stands at 36.9, also in the mid-range, reflecting balanced buying and selling pressure.