HFCL Ltd (HFCL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

HFCL

Valiant Commun.

Sterlite Tech.

Vindhya Telelink

Indus Towers

Optiemus Infra

Suyog Telematics

ITI

GTL Infra.

Tejas Networks

Pace Digitek

Why is HFCL Ltd ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 2.29 times

With a growth in Net Sales of 127.81%, the company declared Outstanding results in Mar 26

OPERATING PROFIT TO INTEREST(Q) Highest at 5.01 times
NET SALES(Q) Highest at Rs 1,824.12 cr
PBDIT(Q) Highest at Rs 314.67 cr.

Market Beating performance in long term as well as near term

Along with generating 85.47% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to HFCL should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is HFCL for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

HFCL

85.47%

2.04

41.91%

Sensex

-3.33%

-0.25

13.43%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.27%

EBIT Growth (5y)

3.92%

EBIT to Interest (avg)

2.93

Debt to EBITDA (avg)

1.99

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

1.05

Tax Ratio

22.97%

Dividend Payout Ratio

8.13%

Pledged Shares

56.93%

Institutional Holding

15.65%

ROCE (avg)

13.04%

ROE (avg)

8.02%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.43

EV to EBIT

37.91

EV to EBITDA

30.07

EV to Capital Employed

3.74

EV to Sales

4.63

PEG Ratio

1.06

Dividend Yield

0.07%

ROCE (Latest)

9.86%

ROE (Latest)

6.37%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

40What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 5.01 times

NET SALES(Q)

Highest at Rs 1,824.12 cr

PBDIT(Q)

Highest at Rs 314.67 cr.

PBT LESS OI(Q)

Highest at Rs 205.67 cr.

PAT(Q)

Highest at Rs 178.50 cr.

DEBTORS TURNOVER RATIO(HY)

Highest at 2.24 times

EPS(Q)

Highest at Rs 1.17

-2What is not working for the Company

INTEREST(9M)

At Rs 186.44 cr has Grown at 21.51%

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Here's what is working for HFCL

Net Sales - Quarterly

At Rs 1,824.12 cr has Grown at 127.81%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 5.01 times and Grown

each quarter in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 205.67 cr has Grown at 273.46%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 178.50 cr has Grown at 319.2%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 1,824.12 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 314.67 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 205.67 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 178.50 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 1.17

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Highest at 2.24 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for HFCL

Interest - Nine Monthly

At Rs 186.44 cr has Grown at 21.51%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

Highest at Rs 22.26 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income