This small-cap telecom stock, which is a leading Indian technology company manufacturing telecom products, optical fibers, and cables, serving telecom, defence, and railway sectors globally, jumps 3 percent after securing an order worth Rs. 44 crore from the Indian Army for supplying tactical optical fiber cable assemblies.
Stock Price Movement:
With a market capitalization of Rs. 11,948.22 crores, the share of HFCL Limited has reached an intraday high of Rs. 85.90 per equity share, rising nearly around 2.76 percent from its previous day’s close price of Rs. 83.86. Since then, the stock has retreated and is currently trading at Rs. 82.82 per equity share.
What Happened:
HTL Limited, a subsidiary of HFCL Limited, has secured a Rs. 44.36 crore contract from the Indian Army for supplying Tactical Optical Fiber Cable Assemblies. These advanced cables are designed to withstand heavy armored vehicle loads and come with military-grade connectors for extreme conditions.
Engineered for mission-critical applications, they ensure rapid deployment of optical fiber communication in challenging battlefield environments. The lightweight and portable design allows infantry personnel to carry them easily in a backpack.
This contract highlights HTL’s expertise in defence communication solutions and strengthens its position in the industry. The order is set to be executed by July 2025, further expanding HFCL’s role in India’s defence sector.
Order Book:
HFCL has secured major orders under BharatNet Phase III, including an Advance Work Order of Rs. 2,501.30 crores for the Punjab Telecom Circle and Advance Purchase Orders of Rs. 2,167.65 crores from Rail Vikas Nigam Limited for Uttar Pradesh Telecom Circles. Its order book has surged to Rs. 10,410 crores, up from Rs. 6,151 crores in the previous quarter.
Product Developments:
HFCL has launched two advanced Unlicensed Band Radios (UBR) and successfully deployed over 350,000 units. The company is expanding production capacity and improving efficiency to meet growing market demands.
Additionally, HFCL aims to increase export revenue from its optical fiber segment and telecom products, strengthening its presence in the global market.
Defence Sector Initiatives:
HFCL has opened a cutting-edge defence manufacturing facility in Hosur, reinforcing its commitment to the defence sector. The company anticipates receiving orders for electronic fuses and tactical optical fiber cables, marking a key growth opportunity. With strong expectations, HFCL foresees defence sector revenues beginning to contribute from the next financial year.
Recent quarter results:
HFCL Limited’s revenue has decreased from Rs. 1,032 crore in Q3 FY24 to Rs. 1,012 crore in Q3 FY25, which has dropped by 1.94 percent. The net profit has also decreased by 10.98 percent from Rs. 82 crore in Q3 FY24 to Rs. 73 crore in Q3 FY25.
Written By – Nikhil Naik
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