HFCL stock has made considerable gains during the last few trading sessions. As per the share price history, HFCL's share on BSE closed at Rs 52.9 on June 16, 2021. It hit an intraday high of Rs 72.65 in the morning session today. In a week, the stock has delivered 37 per cent returns.
The share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages. It has gained 401 per cent in the last 12 months and risen 168 per cent since the beginning of this year.
"If I divide opportunity landscape in the current scenario, there are four, five areas I can talk about; one, as you all know, additional spectrum has been given to operators for 4G. This will entail some expansion of 4G networks also. This is an opportunity for equipment and service providers like us," Mr. Mahendra Nahata, the Managing Director of HFCL said in a Conference Call.
He informed that the large-scale Fiber-To-The-Home (FTTH) rollout is happening. The company is the largest producer of FTTH cable in India. "So that is another big opportunity for us. As the FTTH rollout happens there will be a huge demand for FTTH related cables also," he noted.
He further added that the third opportunity is the upcoming BharatNet. The Government has cleared BharatNet implementation of PPP model. And once fully implemented in three years' timeframe, the total demand for fiber optic cable is projected to be 10 lakh cable Kms. Added to that, with the demand for Wi-Fi systems, fiber-to-home equipment, routers, switches, all of these products are or going to be the portfolio of HFCL.
Speaking on the 5G deployment, he said, "There are two opportunities we are going to pursue in 5G. One is the product, which is our ongoing business and new products are going to be added in the 5G radio equipment which is macro cells and small cells, both, which are under designing right now.
"Second, we have opened up a new division in the Company this time, system integration for 5G, which includes not turnkey projects, equipment may be supplied by us, equipment may be supplied by Ericsson, Nokia, Samsung, whoever," he added.
The company reported a net profit of Rs 84.67 crore in Q4. Profit in the year-ago period stood at Rs 5.78 crore.
Net sales grew 109.8 per cent to Rs 1391.40 crore for the quarter ended March 2021 compared to Rs 663.19 crore in the year-ago period.
Recently, the company also announced the launch of its Telecom Infra Project (TIP) Open WIFI compliant Access Points. TIP is a global community of companies and organisations that are driving infrastructure solutions to advance global connectivity.
HFCL Limited (formerly Himachal Futuristic Communications Limited) is a technology enterprise engaged in manufacturing high-end Transmission and Access Equipment, Optical Fiber, Optical Fiber Cables (OFC).
It is specialised in setting up of modern communication network for Telecom Service Providers, Railways, Defence, Smart City, and Surveillance projects.
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