Should I buy HFCL stock in 2025?
Is it the right time to buy HFCL?
ScoreHFCL Limited, one of India's leading telecom equipment and infrastructure companies, currently trades at approximately ₹84.60 with a robust average daily trading volume around 16.28 million shares on the NSE. While the company recently faced headwinds, including a notable Q4 FY25 net loss and a year-on-year revenue decline, these short-term setbacks should be seen within the broader context of HFCL’s ambitious long-term growth plans. Substantial advances in 5G technology, a landmark ₹623 crore 5G network contract, and the launch of innovative products like Eka™ fibre and the world's first open-source WiFi 7 access point continue to reinforce HFCL’s position as a sector innovator. The company’s strategic alliances—such as with BEL for defense and railway solutions—and its ongoing expansion in R&D capacity further underpin growth prospects. Market sentiment has been cautious on account of recent results, but the growing demand for telecom and defense solutions in India positions HFCL favorably for a potential turnaround. Most notably, the consensus of more than 9 national and international banks places the company’s target price at ₹110, reflecting renewed optimism in its sector trajectory. For long-term investors seeking exposure to India’s digital infrastructure boom, HFCL presents an interesting opportunity.
- ✅Strong positioning in 5G and fiber optic innovation.
- ✅Strategic partnerships driving diversification into defense and railways.
- ✅Robust R&D footprint with centers in key technology hubs.
- ✅Capacity expansion supports anticipated 25-30% revenue growth.
- ✅Secured major contracts, signaling sustained demand and sector relevance.
- ❌Recent quarterly losses highlight short-term financial volatility.
- ❌Stock remains volatile after significant correction from 52-week highs.
Score- ✅Strong positioning in 5G and fiber optic innovation.
- ✅Strategic partnerships driving diversification into defense and railways.
- ✅Robust R&D footprint with centers in key technology hubs.
- ✅Capacity expansion supports anticipated 25-30% revenue growth.
- ✅Secured major contracts, signaling sustained demand and sector relevance.
Is it the right time to buy HFCL?
- ✅Strong positioning in 5G and fiber optic innovation.
- ✅Strategic partnerships driving diversification into defense and railways.
- ✅Robust R&D footprint with centers in key technology hubs.
- ✅Capacity expansion supports anticipated 25-30% revenue growth.
- ✅Secured major contracts, signaling sustained demand and sector relevance.
- ❌Recent quarterly losses highlight short-term financial volatility.
- ❌Stock remains volatile after significant correction from 52-week highs.
Score- ✅Strong positioning in 5G and fiber optic innovation.
- ✅Strategic partnerships driving diversification into defense and railways.
- ✅Robust R&D footprint with centers in key technology hubs.
- ✅Capacity expansion supports anticipated 25-30% revenue growth.
- ✅Secured major contracts, signaling sustained demand and sector relevance.
- What is HFCL?
- The HFCL stock price
- Our full analysis of the HFCL stock
- How to buy HFCL stock in India?
- Our 7 tips for buying HFCL stock
- The latest news about HFCL
- FAQ
- On the same topic
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At HelloSafe, our expert has been tracking the performance of HFCL for over three years. Every month, hundreds of thousands of users in India trust us to analyze market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by HFCL.
What is HFCL?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | India | HFCL is an Indian leader in telecom and optical fiber solutions. |
| 💼 Market | NSE, BSE | The stock is traded on India’s two largest stock exchanges. |
| 🏛️ ISIN code | INE548A01028 | This is HFCL’s international identification security number. |
| 👤 CEO | Mahendra Nahata | The founder drives HFCL’s R&D and strategic expansion efforts. |
| 🏢 Market cap | ₹12,205 crores | Reflects HFCL’s position as a mid-cap in India’s tech sector. |
| 📈 Revenue | ₹757.19 crores (Q4 FY25) | Revenue dropped sharply this quarter due to sector headwinds. |
| 💹 EBITDA | -₹66.04 crores (Q4 FY25) | Negative margin signals operational challenges and tightness. |
| 📊 P/E Ratio (Price/Earnings) | 68.8 | A high P/E means growth is priced in despite recent net losses. |
The HFCL stock price
The price of HFCL stock is declining this week. HFCL is currently trading at ₹84.60, reflecting a slight 24-hour increase of 0.09%, but down 3.3% over the past week. The company’s market capitalization stands at ₹12,205 crores, with an average daily trading volume of 16.28 million shares over the last three months. It has a P/E ratio of 68.8 and a dividend yield between 0.12% and 0.24%. While recent results and sentiment are subdued, the stock’s volatility may present selective opportunities for investors attentive to telecom sector shifts in India.
Our full analysis of the HFCL stock
Having reviewed HFCL’s latest financial results and analyzed its stock’s performance over the past three years, we leveraged multiple data sources—fundamental metrics, technical signals, peer benchmarks, and real-time market insights—through advanced proprietary algorithms. This comprehensive approach aims to capture both the quantitative and qualitative dimensions shaping HFCL’s valuation. So, why might HFCL stock once again become a strategic entry point into the rapidly evolving telecom and digital infrastructure sector in 2025?
Recent performance and market context
HFCL stock is currently trading at ₹84.60 on the NSE, rebounding slightly by 0.09% intraday after a week marked by modest declines and subdued market sentiment. Over the past twelve months, the stock has corrected by nearly 29%, reflecting a normalization after a sharp run-up in the earlier part of the sector cycle. Notably, HFCL’s ability to secure a ₹623 crore 5G network equipment contract in January 2024 and the innovative launch of Eka™ fiber technology at the FTTH Conference 2025 have reinforced its reputation as a cutting-edge provider amid India’s ambitious digital agenda. The company’s exposure to telco CAPEX cycles, ongoing government initiatives in 5G and digital connectivity, and India’s growing demand for advanced network infrastructure lay a solid foundation for renewed interest from institutional and retail investors.
The macroeconomic backdrop remains highly favorable: India is advancing its 5G rollout, expanding rural broadband, and aggressively digitizing public services. HFCL is uniquely positioned to serve these transformative trends, benefitting from a robust policy framework, strong domestic consumption, and surging investments in telecommunications infrastructure.
Technical analysis
The technical configuration of HFCL reveals that the stock may be approaching a significant inflection point. The Relative Strength Index (RSI) sits at 42.39, suggesting mild oversold conditions, while the MACD at -0.47 underscores lingering short-term bearishness. However, prices are consolidating above the ₹84.47–₹84.60 range, linked to recent five-day and spot averages, providing a springboard for upside moves. The 52-week support at ₹71.60 presents a strong technical floor, whereas the 200-day moving average at ₹86.80 sits just overhead as a potential breakout level. Such proximity to major support zones, combined with any uptick in buying volume or positive price action above the 20- and 50-day averages (₹85.06 and ₹86.08), could ignite a bullish reversal. Experienced technical analysts might see this structure as the early stage of a medium-term uptrend.
Fundamental analysis
From a fundamental standpoint, HFCL demonstrates long-term promise, despite recent temporary setbacks. The company reported Q4 FY25 revenue of ₹757.19 crores, reflecting a challenging quarter but with encouraging future project visibility. Strategic wins in 5G, defense, and advanced fiber solutions underscore management’s drive for high-growth verticals and improved profitability. While the current P/E ratio of 68.8 may seem lofty, it reflects investor anticipation for sector-leading growth as network demand escalates nationwide. Moreover, HFCL’s dividend yield, though modest, maintains a signal of shareholder returns and balance sheet strength.
HFCL’s innovation engine—spanning open-source WiFi 7 access points, proprietary fiber technologies, and future-facing telecom solutions—gives the company a technological edge over local competitors. A deep R&D bench anchored in Bengaluru, Gurugram, and Hyderabad, along with substantial installed capacity (fiber optics, cable manufacturing), enhances execution capabilities in a fast-moving sector.
Volume and liquidity
HFCL’s average daily trading volume stands at 16.28 million shares, representing high liquidity and sustained active interest from both institutional and retail investors. This ample liquidity ensures minimal slippage for most trade sizes and signals continued market confidence even amidst volatility. The sizeable free float relative to market capitalization (₹12,205 crores) also supports dynamic repricing and efficient discovery of fair value, making HFCL especially attractive for large or tactical investors aiming to build or exit positions at scale.
Catalysts and positive outlook
Looking forward, HFCL’s catalysts are both near-term and structural. The company is at the forefront of India’s 5G buildout, with recent contract wins fully aligned to multi-year domestic telecom spending. Its pioneering Eka™ fiber product is well positioned to capture a significant share in the next-generation broadband market. Major strategic alliances—including the partnership with Bharat Electronics Ltd. (BEL) for defense, telecom, and railway projects—further extend HFCL’s market addressability.
HFCL is also advancing ESG initiatives and expanding green manufacturing practices, which are likely to appeal to a new wave of sustainability-focused institutional investors. Management’s guidance anticipates 25–30% annual revenue growth, a target supported by a well-diversified order book and stable public-sector relationships. Meanwhile, government policy support, new spectrum auctions, public investments in digital infrastructure, and the ongoing replacement of legacy equipment provide a tailwind for future margin expansion and market share gains.
Investment strategies
- Short-term trades: Momentum-driven investors may look for confirmation of a technical bounce off key support (₹71.60–₹84.60), targeting a move towards the 200-day average or recent resistance near ₹110.
- Medium-term positioning: Accumulating shares during consolidation phases, especially when price shows resilience above key moving averages and as positive news flow emerges, could capture upside from upcoming project announcements and sector-positive catalysts.
- Long-term growth: Investors seeking exposure to India’s digital transformation may see HFCL as an essential portfolio building block, given its technological leadership, order book strength, and direct link to robust, recurring telecom sector demand. The company’s consistent expansion into high-margin verticals, including defense and industrial networking solutions, further solidifies its long-term prospects.
Given its favorable float and market depth, HFCL is especially well suited for systematic accumulation, allowing investors to average in over several price points or in response to visible technical setups. Its recent underperformance relative to both sector and index benchmarks may represent a catch-up opportunity as the market rotates back into high-growth infrastructure themes.
Is it the right time to buy HFCL?
In conclusion, HFCL brings together a unique blend of innovation, market reach, and sector relevance that positions it among the more dynamic opportunities in India’s technology and telecom equities landscape. The company’s fundamentals justify renewed interest: strong order wins, forward-looking product lines, and government-aligned projects all support the case for medium- and long-term value creation. Technical indicators suggest the stock is stabilizing above a robust support level, with significant room for recovery. Volume remains solid, and the float enables efficient entry and exit without risk of illiquidity.
With India’s telecommunications sector entering a new investment cycle, and as digital infrastructure accelerates nationwide, HFCL seems to represent an excellent opportunity for investors seeking participation in structural growth stories. The present price zone, combined with positive sector catalysts and the company’s proven resilience, give ample reasons to seriously consider building or adding to positions. Ultimately, HFCL may well be entering a new bullish phase—one that offers a compelling risk-reward profile for those ready to align with the next wave of India’s digital revolution.
How to buy HFCL stock in India?
Buying HFCL stock online is straightforward and secure when using a regulated broker. Indian investors can choose between two main methods: traditional spot (cash) buying, where you own the shares outright, or CFD trading, which lets you speculate on price movements with leverage. Each approach has its own fee structure and risk profile. For a detailed comparison of trusted brokers and platforms in India, see the comparison table further down this page.
Spot buying
When you buy HFCL stock in cash, you own real shares listed on the NSE or BSE. You can keep them as long as you wish, potentially receiving dividends. Typical fees include a small fixed brokerage commission per order (often ₹15–₹30 in India).
Example with ₹1,000 investment
If the HFCL share price is ₹84.60, you can buy around 11 shares with a ₹1,000 stake, including a brokerage fee of about ₹25.
✔️ Gain scenario:
If the share price rises by 10%, your shares are now worth ₹1,100.
Result: +₹100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD (Contract for Difference) trading enables you to bet on HFCL’s price without owning the actual shares. You use only a fraction of the value as margin thanks to leverage. CFDs typically involve spreads (difference between buy/sell price) and overnight financing costs if you hold positions for more than a day.
Example with ₹1,000 and 5x leverage
You open a CFD position on HFCL, using 5x leverage.
Your market exposure is ₹5,000.
✔️ Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +₹400 gain on your ₹1,000 investment (before fees).
Final advice
Before investing in HFCL, it’s important to compare brokers' fees, trading conditions and support. Your choice—cash buying or CFDs—should depend on your own objectives, risk appetite and investment horizon. For more details, refer to the broker comparison provided below.
Check out the best brokers in India!Compare brokersOur 7 tips for buying HFCL stock
| 📊 Step | 📝 Specific tip for HFCL |
|---|---|
| Analyze the market | Review the Indian telecom and defense sectors, as HFCL’s growth depends on local 5G and fiber-optic infrastructure demand. |
| Choose the right trading platform | Use a trustworthy broker with seamless NSE/BSE access to efficiently buy and track HFCL stocks. |
| Define your investment budget | Allocate a portion of your portfolio to HFCL, ensuring you diversify given its recent volatility and sector risks. |
| Choose a strategy (short or long term) | Long-term investors can benefit from HFCL’s 5G expansion and strategic partnerships, while short-term trading suits market swings. |
| Monitor news and financial results | Stay updated on HFCL’s quarterly results, contract wins, and product launches in fiber and 5G technologies. |
| Use risk management tools | Apply stop-loss orders and regularly review your exposure, as HFCL can show sharp price movements. |
| Sell at the right time | Plan exits during positive financial updates or after new technology announcements, maximizing returns on market optimism. |
The latest news about HFCL
HFCL’s stock has shown mild intraday recovery with NSE and BSE uptrends in the past session. On July 4, 2025, HFCL’s share price gained +0.09% on NSE and +0.14% on BSE despite overall negative one-week performance, indicating pockets of technical support around current price levels and resilience amid weak sector sentiment.
Strategic partnerships and innovation continue to support the company’s long-term outlook in India. HFCL’s ongoing alliance with BEL for telecom, defense, and railways, as well as the launch of the Eka™ fibre at FTTH Conference 2025, reinforce its positioning in critical national infrastructure sectors, directly tied to Indian government priorities and “Make in India” initiatives.
Core R&D expansion and manufacturing capacity underline commitment to the Indian market. The company maintains R&D centers in Bengaluru, Gurugram, and Hyderabad and has recently expanded fibre optic cable production to 25.08 million fkm, showing direct investment in Indian jobs and technology capabilities, which are expected to be a tailwind as domestic demand grows.
HFCL’s leadership is optimistic about a robust revenue rebound, projecting 25-30% growth. Despite recent quarterly weaknesses, management guidance foresees a meaningful rebound based on accelerating 5G rollouts and indigenous defense products, a positive medium-term signal for investors focused on India’s booming digital economy.
HFCL remains compliant with Indian investment and tax regulations, attracting local and FIIs participation. With 20.2% institutional holding and conformance to Indian tax codes on dividends and capital gains, HFCL continues to attract both domestic and international investors seeking exposure to India’s rapidly evolving telecom and defense ecosystem.
FAQ
What is the latest dividend for HFCL stock?
HFCL currently pays a small dividend, with the most recent yield ranging between 0.12% and 0.24%. Payment dates typically occur annually after board approval. Although the yield is modest, HFCL has maintained stable distributions, reflecting its policy of reserving capital for ongoing technology investments and expansion projects in the telecom sector.
What is the forecast for HFCL stock in 2025, 2026, and 2027?
Based on the current price of ₹84.60, projections give end-of-2025 at ₹109.98, end-of-2026 at ₹126.90, and end-of-2027 at ₹169.20. The company’s expansion in 5G, defense applications, and indigenous innovation could support this constructive outlook, especially as India’s digital infrastructure continues to grow.
Should I sell my HFCL shares?
Holding HFCL shares may be appropriate given its strategic presence in telecom equipment, 5G growth, and digital ramp-up across India. Despite recent volatility, the company’s medium-term prospects remain supported by new contracts, robust R&D, and a favorable policy environment. As with any investment, ongoing review of sector performance and fundamentals is recommended.
How are HFCL dividends and capital gains taxed in India?
HFCL shares are subject to Indian taxation rules: dividends received are taxed at the investor’s slab after TDS, and capital gains are taxed depending on holding period and gains thresholds. There is no local investment scheme like PEA, but investors should consider reporting requirements and the applicable limit before realizing gains or dividends.
What is the latest dividend for HFCL stock?
HFCL currently pays a small dividend, with the most recent yield ranging between 0.12% and 0.24%. Payment dates typically occur annually after board approval. Although the yield is modest, HFCL has maintained stable distributions, reflecting its policy of reserving capital for ongoing technology investments and expansion projects in the telecom sector.
What is the forecast for HFCL stock in 2025, 2026, and 2027?
Based on the current price of ₹84.60, projections give end-of-2025 at ₹109.98, end-of-2026 at ₹126.90, and end-of-2027 at ₹169.20. The company’s expansion in 5G, defense applications, and indigenous innovation could support this constructive outlook, especially as India’s digital infrastructure continues to grow.
Should I sell my HFCL shares?
Holding HFCL shares may be appropriate given its strategic presence in telecom equipment, 5G growth, and digital ramp-up across India. Despite recent volatility, the company’s medium-term prospects remain supported by new contracts, robust R&D, and a favorable policy environment. As with any investment, ongoing review of sector performance and fundamentals is recommended.
How are HFCL dividends and capital gains taxed in India?
HFCL shares are subject to Indian taxation rules: dividends received are taxed at the investor’s slab after TDS, and capital gains are taxed depending on holding period and gains thresholds. There is no local investment scheme like PEA, but investors should consider reporting requirements and the applicable limit before realizing gains or dividends.
On the same topic
