HFCL Ltd Share Price Target 2024, 2025 to 2030, Performance and Stock Market Update

HFCL Ltd Share Price Target 2024, 2025 to 2030, Performance and Stock Market Update

HFCL Ltd Share Price Target 2024, 2025 to 2030, Performance and Stock Market Update: We’ll analyze in this article we will discuss you HFCL Ltd Share Price Target 2024, 2025 to 2030, Performance, Stock market Update, Financial Health and Performance Analysis, Shareholding Pattern, Peer Competitors and More Details of HFCL Ltd. HFCL Ltd, a leader in telecommunications, excels in optical fibre cables and network solutions. With strong growth prospects from 5G expansion and smart city projects, the company is well-positioned for long-term success in the telecom sector.

Overview of HFCL Ltd

What is HFCL Ltd?

HFCL Ltd is an Indian technology company specializing in the design, development, and manufacturing of telecommunications equipment, fibre-optic cables, and related electronics. Based in Gurugram, the company plays a key role in providing advanced communication solutions for telecom, data, and security sectors. HFCL Ltd is listed on both the Bombay Stock Exchange and the National Stock Exchange, contributing significantly to India’s infrastructure in the telecom and broadband industries.

Key Features of HFCL Ltd:

  • Telecom Equipment Leader: HFCL is a major player in the manufacturing of telecom equipment, including fibre-optic cables and security systems.
  • Broad Market Reach: The company serves both domestic and international markets with a focus on cutting-edge technology solutions.
  • Revenue Growth: In FY23, HFCL reported a revenue of ₹4,743 crores (US$590 million).
  • Employee Strength: HFCL employs over 2,100 professionals, contributing to its growth and innovation.
  • Subsidiaries: HFCL owns HTL Ltd. and Polixel Security Systems Private Limited, expanding its product portfolio.

Information about HFCL Ltd:

InformationDetails
Websitehfcl.com
HeadquartersGurugram, India
Founded1987
Managing Director & CEONot mentioned
Number of Employees2,114 (2024)
Revenue₹4,743 crores INR (US$590 million, FY23)
Parent OrganizationIndependent
SubsidiariesHTL Ltd., Polixel Security Systems Private Limited
BSE Symbol500183
NSE SymbolHFCL

Current Market Position of HFCL Ltd Share

As of November 2024, HFCL Ltd’s share has exhibited mixed performance trends. It is down by -0.84% today and -0.48% over the past week. However, the share has shown a strong recovery with a +9.9% gain over the last month, despite a -13.28% decline over the past three months. Over the past year, HFCL has achieved an impressive growth of +89.75%, with long-term returns of +627.84% in five years and +79.38% over the past three years.

HFCL Ltd Share Fundamental Data

  • Market Cap: ₹18,227 Cr.
  • Current Price: ₹126
  • High / Low: ₹171 / ₹66.0
  • Stock P/E: 48.5
  • Book Value: ₹29.0
  • Dividend Yield: 0.16%
  • ROCE: 13.3%
  • ROE: 9.38%
  • Face Value: ₹1.00

Market Position of HFCL Ltd Share as of November 2024

Time PeriodReturns of HFCL Share
1 Day-0.84%
1 Week-0.48%
1 Month9.9%
3 Months-13.28%
1 Year89.75%
3 Years79.38%
5 Years627.84%

HFCL Ltd Share Price Target for 2024, 2025, 2026, 2027, 2028, 2029, 2030

HFCL Ltd Share Price Target in 2024

In 2024, the share price target for HFCL Ltd is expected to range between ₹140 and ₹160, reflecting moderate growth driven by its strong market position in the telecom sector and rising demand for optical fibre solutions.

YearMinimum TargetMaximum Target
2024₹140₹160

HFCL Ltd Share Price Target in 2025

For 2025, HFCL Ltd’s share price target is projected to range between ₹180 and ₹210, supported by advancements in 5G infrastructure and smart city projects.

YearMinimum TargetMaximum Target
2025₹180₹210

HFCL Ltd Share Price Target in 2026

In 2026, the share price target for HFCL Ltd is expected to range between ₹240 and ₹270, driven by sustained investments in technology upgrades and export growth in fibre-optic cables.

YearMinimum TargetMaximum Target
2026₹240₹270

HFCL Ltd Share Price Target in 2027

By 2027, HFCL Ltd’s share price target is projected to range between ₹310 and ₹350, reflecting its growing market share and expansion into global telecom markets.

YearMinimum TargetMaximum Target
2027₹310₹350

HFCL Ltd Share Price Target in 2028

In 2028, the share price target for HFCL Ltd is estimated to range between ₹400 and ₹450, reflecting sustained growth and innovations in telecom technologies.

YearMinimum TargetMaximum Target
2028₹400₹450

HFCL Ltd Share Price Target in 2029

For 2029, the share price target for HFCL Ltd is expected to range between ₹500 and ₹550, driven by consistent performance and increased global demand for telecom solutions.

YearMinimum TargetMaximum Target
2029₹500₹550

HFCL Ltd Share Price Target in 2030

By 2030, HFCL Ltd’s share price target is projected to range between ₹600 and ₹650, supported by long-term growth in the telecom industry and the company’s leadership in innovative technology solutions.

YearMinimum TargetMaximum Target
2030₹600₹650

Financial Health and Performance Analysis of HFCL Ltd (FY 2020 – FY 2024)

HFCL Financials Income (P&L) (FY 2020 – FY 2024)

FY 2024

MetricFY 2024Y/Y Growth
Total Revenue₹4,565.64 Cr-4.69%
Total Expenses₹4,112.55 Cr-5.67%
Profit after Tax (PAT)₹329.81 Cr+9.58%
Operating Profit Margin (OPM)13.44%
Net Profit Margin (NPM)7.38%
Basic EPS (₹)₹2.33+9.58%

FY 2023

MetricFY 2023Y/Y Growth
Total Revenue₹4,790.49 Cr+0.43%
Total Expenses₹4,359.79 Cr+0.88%
Profit after Tax (PAT)₹300.97 Cr-3.88%
Operating Profit Margin (OPM)12.28%
Net Profit Margin (NPM)6.34%
Basic EPS (₹)₹2.18-3.88%

FY 2022

MetricFY 2022Y/Y Growth
Total Revenue₹4,770.02 Cr+6.97%
Total Expenses₹4,321.69 Cr+4.94%
Profit after Tax (PAT)₹313.12 Cr+31.01%
Operating Profit Margin (OPM)13.00%
Net Profit Margin (NPM)6.62%
Basic EPS (₹)₹2.38+31.01%

FY 2021

MetricFY 2021Y/Y Growth
Total Revenue₹4,459.09 Cr+15.49%
Total Expenses₹4,118.10 Cr+17.61%
Profit after Tax (PAT)₹239.00 Cr+5.18%
Operating Profit Margin (OPM)11.69%
Net Profit Margin (NPM)5.40%
Basic EPS (₹)₹1.86+5.18%

FY 2020

MetricFY 2020Y/Y Growth
Total Revenue₹3,860.99 Cr-19.31%
Total Expenses₹3,501.59 Cr-21.23%
Profit after Tax (PAT)₹227.24 Cr+3.33%
Operating Profit Margin (OPM)12.35%
Net Profit Margin (NPM)5.91%
Basic EPS (₹)₹1.77+3.33%

Analysis Summary:

  • Revenue Growth: HFCL experienced a decline of -4.69% in total revenue in FY 2024, following a relatively flat growth of +0.43% in FY 2023, indicating challenges in revenue expansion.
  • Expense Management: Total expenses declined by -5.67% in FY 2024, showcasing improved cost control.
  • Profitability: Profit after Tax (PAT) grew by +9.58% in FY 2024, reflecting a recovery from the slight decline in FY 2023 and consistent profitability improvement.
  • Margins: Operating Profit Margin (OPM) increased to 13.44% in FY 2024, up from 12.28% in FY 2023. Net Profit Margin (NPM) also improved to 7.38%, indicating enhanced efficiency.
  • Earnings Per Share (EPS): Basic EPS rose to ₹2.33 in FY 2024, a +9.58% increase, providing solid returns for shareholders.

HFCL Financials Balance Sheet (FY 2020 – FY 2024)

FY 2024

MetricFY 2024Y/Y Growth
Total Assets₹6,486.83 Cr+18.53%
Total Liabilities₹2,487.00 Cr+6.81%
Total Equity₹3,999.83 Cr+27.22%
Current Ratio (x)2.08
Total Debt to Equity (x)0.25
Contingent Liabilities₹1,577.05 Cr

FY 2023

MetricFY 2023Y/Y Growth
Total Assets₹5,472.59 Cr+5.82%
Total Liabilities₹2,328.45 Cr-1.05%
Total Equity₹3,144.14 Cr+11.56%
Current Ratio (x)1.91
Total Debt to Equity (x)0.24
Contingent Liabilities₹1,559.08 Cr

FY 2022

MetricFY 2022Y/Y Growth
Total Assets₹5,171.46 Cr-0.85%
Total Liabilities₹2,353.09 Cr-28.53%
Total Equity₹2,818.37 Cr+46.53%
Current Ratio (x)1.75
Total Debt to Equity (x)0.26
Contingent Liabilities₹1,601.03 Cr

FY 2021

MetricFY 2021Y/Y Growth
Total Assets₹5,215.80 Cr+36.22%
Total Liabilities₹3,292.33 Cr+52.38%
Total Equity₹1,923.47 Cr+15.29%
Current Ratio (x)1.39
Total Debt to Equity (x)0.45
Contingent Liabilities₹1,348.58 Cr

FY 2020

MetricFY 2020Y/Y Growth
Total Assets₹3,828.98 Cr+15.88%
Total Liabilities₹2,160.59 Cr+15.38%
Total Equity₹1,668.39 Cr+16.53%
Current Ratio (x)1.60
Total Debt to Equity (x)0.41
Contingent Liabilities₹1,088.31 Cr

Analysis Summary:

  • Total Assets: HFCL exhibited consistent growth in total assets, with an 18.53% increase in FY 2024, continuing a positive trend over the last five years except for a slight decline in FY 2022.
  • Liabilities: Total liabilities rose by 6.81% in FY 2024 after declining in FY 2023, reflecting effective management of financial obligations.
  • Equity: Total equity grew significantly by 27.22% in FY 2024, showcasing strong shareholder value creation over the years.
  • Liquidity: The current ratio improved to 2.08 in FY 2024, indicating robust liquidity and financial flexibility.
  • Debt Management: The total debt-to-equity ratio remained stable at 0.25 in FY 2024, highlighting HFCL’s prudent debt management.
  • Contingent Liabilities: Contingent liabilities increased slightly to ₹1,577.05 Cr in FY 2024, though still manageable and consistent with prior years.

HFCL Financials Cash Flow (FY 2020 – FY 2024)

FY 2024

MetricFY 2024Y/Y Growth
Net Cash Flow from Operating Activities₹-44.87 Cr
Net Cash Used in Investing Activities₹-448.72 Cr
Net Cash Flow from Financing Activities₹454.01 Cr
Net Cash Flow₹-39.58 Cr
Closing Cash & Cash Equivalent₹23.33 Cr-63.36%
Closing Cash & Cash Equivalent Growth (%)-63.36%
Total Debt / CFO (x)-21.78

FY 2023

MetricFY 2023Y/Y Growth
Net Cash Flow from Operating Activities₹236.41 Cr
Net Cash Used in Investing Activities₹-44.63 Cr
Net Cash Flow from Financing Activities₹-144.80 Cr
Net Cash Flow₹46.98 Cr
Closing Cash & Cash Equivalent₹63.67 Cr+270.17%
Closing Cash & Cash Equivalent Growth (%)+270.17%
Total Debt / CFO (x)3.17

FY 2022

MetricFY 2022Y/Y Growth
Net Cash Flow from Operating Activities₹205.88 Cr
Net Cash Used in Investing Activities₹-457.84 Cr
Net Cash Flow from Financing Activities₹247.85 Cr
Net Cash Flow₹-4.11 Cr
Closing Cash & Cash Equivalent₹17.20 Cr-19.25%
Closing Cash & Cash Equivalent Growth (%)-19.25%
Total Debt / CFO (x)3.54

FY 2021

MetricFY 2021Y/Y Growth
Net Cash Flow from Operating Activities₹56.82 Cr
Net Cash Used in Investing Activities₹-76.94 Cr
Net Cash Flow from Financing Activities₹24.98 Cr
Net Cash Flow₹4.86 Cr
Closing Cash & Cash Equivalent₹21.30 Cr+29.48%
Closing Cash & Cash Equivalent Growth (%)+29.48%
Total Debt / CFO (x)15.08

FY 2020

MetricFY 2020Y/Y Growth
Net Cash Flow from Operating Activities₹167.32 Cr
Net Cash Used in Investing Activities₹-161.84 Cr
Net Cash Flow from Financing Activities₹-6.56 Cr
Net Cash Flow₹-1.08 Cr
Closing Cash & Cash Equivalent₹16.45 Cr-6.16%
Closing Cash & Cash Equivalent Growth (%)-6.16%
Total Debt / CFO (x)4.13

Analysis Summary:

  1. Operating Cash Flow: HFCL reported a negative net cash flow from operating activities in FY 2024, amounting to ₹-44.87 Cr, reversing the positive figures from FY 2023 and FY 2022.
  2. Investing Activities: Cash outflows in investing activities reached ₹-448.72 Cr in FY 2024, marking the highest investment activity in the five-year period.
  3. Financing Activities: The company had a significant cash inflow of ₹454.01 Cr from financing activities in FY 2024, reflecting active financial management.
  4. Net Cash Flow: HFCL experienced a negative net cash flow of ₹-39.58 Cr in FY 2024, a decline compared to the previous year’s positive cash flow.
  5. Closing Cash Balance: The closing cash balance dropped by -63.36% to ₹23.33 Cr in FY 2024, indicating a considerable decline in liquidity.
  6. Debt Management: The Total Debt / CFO ratio worsened in FY 2024, standing at -21.78, signaling an area of concern in the company’s operational cash coverage of debt obligations.

HFCL Financials Cash Ratios (FY 2020 – FY 2024)

FY 2024

MetricFY 2024Y/Y Growth
Return on Equity (ROE) (%)8.33-1.36%
Return on Capital Employed (ROCE) (%)13.95-3.55%
Return on Assets (ROA) (%)5.08-0.41%
Interest Coverage Ratio (x)4.63+0.25x
Asset Turnover Ratio (x)0.75-0.14x
Price to Earnings (P/E) (x)40.16+12.23x
Price to Book (P/B) (x)3.35+0.65x
EV/EBITDA (x)20.41+7.10x
EBITDA Margin (%)15.27+1.24%

FY 2023

MetricFY 2023Y/Y Growth
Return on Equity (ROE) (%)9.69-1.49%
Return on Capital Employed (ROCE) (%)17.50-3.03%
Return on Assets (ROA) (%)5.49-0.56%
Interest Coverage Ratio (x)4.38+0.22x
Asset Turnover Ratio (x)0.89+0.03x
Price to Earnings (P/E) (x)27.93-6.67x
Price to Book (P/B) (x)2.70-1.17x
EV/EBITDA (x)13.31-2.62x
EBITDA Margin (%)14.03-0.62%

FY 2022

MetricFY 2022Y/Y Growth
Return on Equity (ROE) (%)11.18-1.29%
Return on Capital Employed (ROCE) (%)20.53-2.66%
Return on Assets (ROA) (%)6.05+1.47%
Interest Coverage Ratio (x)4.16+1.22x
Asset Turnover Ratio (x)0.86-83.93x
Price to Earnings (P/E) (x)34.60+21.05x
Price to Book (P/B) (x)3.87+2.18x
EV/EBITDA (x)15.93+9.45x
EBITDA Margin (%)14.65+1.41%

FY 2021

MetricFY 2021Y/Y Growth
Return on Equity (ROE) (%)12.47-1.14%
Return on Capital Employed (ROCE) (%)23.19-1.53%
Return on Assets (ROA) (%)4.58-1.35%
Interest Coverage Ratio (x)2.94-1.19x
Asset Turnover Ratio (x)84.79-15.46x
Price to Earnings (P/E) (x)13.55+8.45x
Price to Book (P/B) (x)1.69+1.00x
EV/EBITDA (x)6.48+3.27x
EBITDA Margin (%)13.24-0.20%

FY 2020

MetricFY 2020Y/Y Growth
Return on Equity (ROE) (%)13.61
Return on Capital Employed (ROCE) (%)24.72
Return on Assets (ROA) (%)5.93
Interest Coverage Ratio (x)4.13
Asset Turnover Ratio (x)100.25
Price to Earnings (P/E) (x)5.10
Price to Book (P/B) (x)0.69
EV/EBITDA (x)3.21
EBITDA Margin (%)13.44

Analysis Summary:

  • Return on Equity (ROE): ROE decreased to 8.33% in FY 2024, continuing the downward trend, reflecting declining shareholder returns.
  • Return on Capital Employed (ROCE): ROCE dropped to 13.95%, suggesting reduced efficiency in capital utilization over the years.
  • Return on Assets (ROA): ROA declined to 5.08% in FY 2024, signaling lower profitability from assets.
  • Interest Coverage Ratio: Improved to 4.63x in FY 2024, indicating better interest-paying capacity.
  • Asset Turnover Ratio: Dropped to 0.75 in FY 2024, indicating a slight decrease in asset utilization efficiency.
  • Price-to-Earnings (P/E): P/E rose sharply to 40.16x in FY 2024, indicating higher investor expectations despite reduced profitability.
  • Price-to-Book (P/B): P/B ratio increased to 3.35x, reflecting market confidence in HFCL’s valuation.
  • EV/EBITDA: EV/EBITDA climbed to 20.41x, suggesting an expensive valuation relative to EBITDA.
  • EBITDA Margin: Improved marginally to 15.27%, indicating enhanced operational efficiency.

How to Buy HFCL Ltd. Shares:

  1. Choose a Broker: Select a brokerage platform that offers HFCL Ltd. shares for trading.
  2. Open a Trading Account: Set up a Demat and trading account with the chosen broker.
  3. Complete KYC: Submit the required identity and address verification documents.
  4. Deposit Funds: Add funds to your trading account to enable share purchases.
  5. Search for HFCL Shares: Find HFCL Ltd. shares by searching for its name or ticker symbol.
  6. Place an Order: Select the quantity of shares and place a market or limit order.
  7. Confirm Purchase: Review the transaction details and confirm your order.

HFCL Ltd. Share Price Target for the Next 5 Years:

HFCL Ltd. is well-positioned in the telecom sector, benefiting from advancements in 5G infrastructure, smart city projects, and growing demand for fibre-optic solutions. Below are the projected share price targets for HFCL Ltd. for the next five years:

YearMinimum Target (₹)Maximum Target (₹)
2024₹140₹160
2025₹180₹210
2026₹240₹270
2027₹310₹350
2028₹400₹450

Shareholding Pattern of HFCL Ltd.

Promoters:

  • No. of Shares: 52,28,31,892
  • Percentage: 36.24%
  • % Change QoQ: -1.39%

Pledge:

  • No. of Shares: 24,15,48,750
  • Percentage: 46.20%
  • % Change QoQ: +1.70%

FII (Foreign Institutional Investors):

  • No. of Shares: 9,64,32,040
  • Percentage: 6.68%
  • % Change QoQ: -0.34%

DII (Domestic Institutional Investors):

  • No. of Shares: 12,53,94,205
  • Percentage: 8.69%
  • % Change QoQ: +1.29%

MF (Mutual Funds):

  • No. of Shares: 12,37,83,356
  • Percentage: 8.58%
  • % Change QoQ: +1.42%

Others:

  • No. of Shares: 69,80,14,675
  • Percentage: 48.39%
  • % Change QoQ: +0.43%

Pros and Cons of HFCL Ltd. Shareholding

Pros:

  • Strong Promoter Stake: The promoters hold 36.24% of the shares, which indicates strong control over the company.
  • Increase in DII and MF Stakes: The Domestic Institutional Investors and Mutual Funds have seen increases in their stakes, signaling growing institutional confidence.

Cons:

  • High Pledged Shares: A significant portion of shares (46.20%) is pledged, which could indicate potential liquidity concerns for the promoters.
  • High Ownership by Others: The “Others” category holds 48.39% of the shares, suggesting a potential lack of strategic alignment within institutional investors.

Peer Competitors of HFCL Ltd in the Telecomm Equipment & Infra Services Industry

NameShare Price (₹)Market Cap (₹ Cr)
HFCL126.3518,226.75

(FAQ)

1. What is the current share price of HFCL Ltd.?

  • As of the latest available data, HFCL Ltd. is trading at ₹126.35.

2. What is the market capitalization of HFCL Ltd.?

  • HFCL Ltd. has a market capitalization of ₹18,226.75 crores.

3. Who are the major shareholders of HFCL Ltd.?

  • The major shareholders of HFCL Ltd. include promoters with a 36.24% stake, followed by others holding 48.39%. Domestic Institutional Investors (DII) and Mutual Funds (MF) hold 8.69% and 8.58%, respectively.

4. Is HFCL Ltd. a good investment?

  • HFCL Ltd. is well-positioned in the telecom equipment and infrastructure sector. However, it is important to consider factors such as its pledged shares and market conditions before making an investment decision.

5. What is the future share price target for HFCL Ltd.?

  • HFCL Ltd.’s share price targets for the coming years are projected as follows:
    • 2024: ₹140 – ₹160
    • 2025: ₹180 – ₹210
    • 2026: ₹240 – ₹270
    • 2027: ₹310 – ₹350
    • 2028: ₹400 – ₹450

6. What are the key risks associated with investing in HFCL Ltd.?

  • Key risks include a high percentage of pledged shares (46.20%), potential volatility in the telecom sector, and market competition. It is important to assess these factors before investing.

7. How can I buy HFCL Ltd. shares?

  • To buy HFCL Ltd. shares, you need to:
    1. Choose a broker or trading platform that offers HFCL shares.
    2. Open a Demat and trading account with the broker.
    3. Complete the necessary KYC process.
    4. Deposit funds into your trading account.
    5. Search for HFCL shares on the platform and place an order.

8. What are the main competitors of HFCL Ltd.?

  • Some of HFCL Ltd.’s competitors in the telecom and engineering sector include:
    • BSE
    • CDSL
    • Multi Commodity Exchange
    • CAMS Services
    • KFin Technologies

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