ScoreWhy is HFCL Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 2.29 times
2
With a growth in Operating Profit of 937.2%, the company declared Outstanding results in Jun 26
- The company has declared positive results for the last 2 consecutive quarters
- NET SALES(9M) At Rs 4,949.89 cr has Grown at 84.44%
- OPERATING PROFIT TO INTEREST(Q) Highest at 6.63 times
- PBT LESS OI(Q) At Rs 300.37 cr has Grown at 607.12%
3
Market Beating performance in long term as well as near term
- Along with generating 180.83% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
4
With its market cap of Rs 31,209 cr, it is the second biggest company in the sector (behind Indus Towers)and constitutes 14.42% of the entire sector
- Its annual Sales of Rs 5,993.23 are 10.12% of the industry
Real-Time Research ReportHow 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
180.83%
3.70
48.89%
Sensex
-2.63%
-0.19
13.57%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.98%
EBIT Growth (5y)
9.96%
EBIT to Interest (avg)
3.04
Debt to EBITDA (avg)
1.99
Net Debt to Equity (avg)
0.25
Sales to Capital Employed (avg)
1.05
Tax Ratio
24.82%
Dividend Payout Ratio
8.13%
Pledged Shares
57.86%
Institutional Holding
26.66%
ROCE (avg)
13.04%
ROE (avg)
8.02%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
56
Industry P/E
20
Price to Book Value
6.51
EV to EBIT
34.07
EV to EBITDA
28.83
EV to Capital Employed
5.40
EV to Sales
5.52
PEG Ratio
0.04
Dividend Yield
0.05%
ROCE (Latest)
9.86%
ROE (Latest)
6.37%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend44What is working for the Company
NET SALES(Q)
At Rs 1,914.98 cr has Grown at 119.85%
OPERATING PROFIT TO INTEREST(Q)
Highest at 6.63 times
PBT LESS OI(Q)
At Rs 300.37 cr has Grown at 607.12%
PBDIT(Q)
Highest at Rs 414.12 cr.
PAT(Q)
Highest at Rs 228.60 cr.
DEBTORS TURNOVER RATIO(HY)
Highest at 2.24 times
OPERATING PROFIT TO NET SALES(Q)
Highest at 21.63%
EPS(Q)
Highest at Rs 1.49
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for HFCL
Net Sales - Quarterly
At Rs 1,914.98 cr has Grown at 119.85%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 6.63 times and Grown
each quarter in the last five quartersMOJO 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 300.37 cr has Grown at 607.12%
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 228.60 cr has Grown at 809.1%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 1,914.98 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 414.12 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 300.37 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 228.60 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 21.63%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Earnings per Share (EPS) - Quarterly
Highest at Rs 1.49
in the last five quartersMOJO 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 periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for HFCL
Non Operating Income - Quarterly
Highest at Rs 31.15 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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