Shares of HFCL Limited, an Indian Telecom company, closed today at a price of Rs 64.20. The scrip dipped around 1 percent as compared to the previous closing price of Rs 64.80. In the past one month, the stock has gained around 5 percent ranging from Rs 61.30 to the current price levels.
Keeping a purview of 2 years, the stock has been able to deliver multibagger returns of approximately 130 percent. It means that if someone would have invested Rs 1,00,000 in the stock, then, it would have converted to Rs 2,30,000 within a period of 2 years.
Through a recent regulatory filing with the exchange, the company announced that it has, along with its material subsidiary, ‘HTL Limited’, received Purchase Orders aggregating to Rs 65.72 crores from Reliance Retail Limited pertaining to the supply of Optical Fibre Cables. The filing further mentioned that the contract is to be executed by October of this year.
HFCL Limited is an Indian-based company engaged in the process of manufacturing and exporting optical fibre cables and broadband equipment for the telecommunication industry. The company has various business segments which include Turnkey Contracts and Telecom Products.
It generates a substantial portion of revenue from the sale of turnkey and related activities. A wide array of solutions provided by the company includes Optical transmission, Microwave Radios, etc.
Having a quick walkthrough of the financials of the company, the revenues have reduced from Rs 1,173 crores in Q2 to Rs 1,086 crores in Q3. On a contrasting note, the PAT figures showed an increase from Rs 84 crores to Rs 100 crores during the same period.
The basic profitability ratios such as the return on equity (ROE) slightly improved from 13.84 percent during FY20-21 to 13.88 percent in FY21-22. Another one is the return on capital employed (ROCE) which marginally moved down from 19.62 percent to 19.12 percent keeping the timeframe the same.
After consistently increasing for a few financial years, the debt-to-equity ratio of the company eventually saw a down movement with the most recent shift being from 0.48 during FY20-21 to 0.26 in FY21-22.
Written by Amit Madnani
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