Should I buy HFCL stock in 2025?
Is HFCL stock a buy right now?
ScoreHFCL Limited (NSE: HFCL) has emerged as a steadily evolving player in India’s dynamic telecom and infrastructure sector. As of mid-May 2025, the stock trades near ₹89.80 with a robust 3-month average daily trading volume of about 14 million shares, highlighting sustained market participation. Over the past few months, HFCL has reported significant new order wins—including a pivotal ₹623 crore 5G equipment contract and orders under the government’s ambitious BharatNet and 6G initiatives. While recent quarterly profits dipped modestly, market sentiment remains constructive due to the company’s strong order book, a strategic tilt toward higher-margin products, and substantial tailwinds from ongoing telecom reforms. Institutional investors have modestly increased their stakes, signifying confidence in HFCL’s multi-year expansion strategy, even as promoter holdings edge lower. Against a backdrop of digital transformation and supportive regulatory moves, HFCL’s strengths in R&D and product diversification are well recognized. In this context, more than 32 national and international banks collectively set a target price of ₹116, reflecting a cautiously optimistic consensus. For investors seeking exposure to India’s telecom equipment opportunity—with its infrastructure push, rollout of new technologies, and growing defence sector interplay—the current phase provides an interesting point of entry for disciplined, long-term portfolios.
- ✅Consistent order inflows from high-value domestic and export clients ensure revenue visibility.
- ✅Strategic push toward high-margin product business supports potential margin expansion.
- ✅Strong research and development focus enables rapid innovation and localization.
- ✅Diversification into defence and global exports reduces sector-specific volatility.
- ✅Resilient market position as India's leading supplier of optical fiber cables.
- ❌Quarterly profit declines and high receivable days require ongoing operational vigilance.
- ❌Promoter share pledging and holding reductions call for continuous monitoring.
- ✅Consistent order inflows from high-value domestic and export clients ensure revenue visibility.
- ✅Strategic push toward high-margin product business supports potential margin expansion.
- ✅Strong research and development focus enables rapid innovation and localization.
- ✅Diversification into defence and global exports reduces sector-specific volatility.
- ✅Resilient market position as India's leading supplier of optical fiber cables.
Is HFCL stock a buy right now?
Score- ✅Consistent order inflows from high-value domestic and export clients ensure revenue visibility.
- ✅Strategic push toward high-margin product business supports potential margin expansion.
- ✅Strong research and development focus enables rapid innovation and localization.
- ✅Diversification into defence and global exports reduces sector-specific volatility.
- ✅Resilient market position as India's leading supplier of optical fiber cables.
- ❌Quarterly profit declines and high receivable days require ongoing operational vigilance.
- ❌Promoter share pledging and holding reductions call for continuous monitoring.
- ✅Consistent order inflows from high-value domestic and export clients ensure revenue visibility.
- ✅Strategic push toward high-margin product business supports potential margin expansion.
- ✅Strong research and development focus enables rapid innovation and localization.
- ✅Diversification into defence and global exports reduces sector-specific volatility.
- ✅Resilient market position as India's leading supplier of optical fiber cables.
- What is HFCL?
- How much is HFCL stock?
- Our full analysis on HFCL stock
- How to buy HFCL stock in IN?
- Our 7 tips for buying HFCL stock
- The latest news about HFCL
- FAQ
- FAQ
What is HFCL?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | India | Indian company, well-positioned to benefit from national telecom and defence initiatives. |
| 💼 Market | NSE (National Stock Exchange) | Listed on India's largest stock exchange, ensuring high liquidity and regulatory oversight. |
| 🏛️ ISIN code | INE548A01028 | Unique security identifier for HFCL shares on Indian exchanges. |
| 👤 CEO | Mahendra Nahata | CEO with extensive experience; under his leadership, HFCL is driving product-led growth. |
| 🏢 Market cap | ₹12,955 crore | Mid-cap stock offering growth prospects, but with higher volatility than large-caps. |
| 📈 Revenue | ₹4,590 crore (TTM) | Stable revenue; new government contracts may drive future top-line growth. |
| 💹 EBITDA | ₹152 crore (Q3 FY25) | Decent operating profit, though margins could improve with better product mix and execution. |
| 📊 P/E Ratio (Price/Earnings) | 35.1 | Valuation is high versus peers, reflecting growth expectations but increasing risk if profits lag. |
How much is HFCL stock?
The price of HFCL stock is rising this week. As of now, HFCL trades at ₹89.80 per share, up 1.55% in the last 24 hours and showing a robust weekly gain of 9.58%.
| Indicator | Value |
|---|---|
| Market capitalization | ₹12,955 crore |
| Average 3-month volume | 14.02 million shares |
| P/E ratio | 35.1 |
| Dividend yield | 0.23% |
| Beta | 0.55 |
HFCL's beta of 0.55 indicates lower volatility compared to the broader market. Investors may find HFCL's recent positive momentum notable, but its moderate volatility also suggests potential stability within the Indian telecom sector.
Check out the best brokers in India!Compare brokersOur full analysis on HFCL stock
Our team has conducted a rigorous review of HFCL Limited’s most recent financial results, juxtaposed with a thorough assessment of the stock’s performance over the past three years. Integrating a suite of analytical perspectives—including quantitative metrics, real-time technical signals, and in-depth market and peer analyses—our proprietary algorithms have identified HFCL as a company of particular interest within India’s technology-driven infrastructure landscape. 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 has shown remarkable resilience and adaptability despite facing cyclical and sector-specific headwinds. After correcting nearly 30% over the last six months and retracing 8% in the past year, the stock has rebounded with notable momentum—gaining 25% from its recent lows and closing at ₹89.80 (+1.55%) on May 19, 2025. The past month alone saw an upswing of 8.72%, reflecting renewed investor conviction and anticipation of fundamental improvements.
Supporting this resurgence, HFCL has recently secured several significant contracts: a ₹157 crore optical fiber supply order for BharatNet Phase III, a ₹2,501 crore advance work order for BSNL, a ₹623 crore order for indigenous 5G networking equipment, and fresh domestic and export orders cumulatively exceeding ₹76 crore. These developments, alongside robust policy tailwinds—such as the government’s 6G notification and proposed license-free use of the 6GHz band, each catalyzing further stock appreciation—demonstrate HFCL’s strategic exposure to India’s digital transformation agenda.
The macroeconomic backdrop remains highly favourable, with India’s focus on digital public infrastructure, broad-based 5G deployment, and the push for indigenously developed technology solutions driving sustained demand for HFCL’s products and services.
Technical Analysis
- Momentum Indicators: With an RSI of 62.21, the momentum is firmly positive without entering extreme overbought conditions. The slightly bullish MACD reading (0.08) reinforces the current uptrend, while a Money Flow Index of 77.18 signals robust capital inflow, underpinned by recent strong gains.
- Moving Averages: The current price comfortably surpasses the 20-day (₹82.86) and 50-day (₹84.14) EMAs, while approaching—but not exceeding—the 100-day (₹91.48) and 200-day (₹99.74) EMAs. This configuration points to a healthy intermediate-term reversal, offering attractive risk-reward for medium-term investors.
- Support and Resistance: Well-defined support levels at ₹88.23 and ₹86.66 present a buffer zone, while a decisive close above ₹92.01 would likely trigger robust follow-through buying, with further resistance at ₹94.22 and ₹95.79.
Given the stock’s consolidation above key short-term support and its ongoing recovery from oversold territory in late Q1 2025, HFCL appears technically primed for an upward re-rating.
Fundamental Analysis
- Revenue and Profitability: While Q3 FY25 revenue dipped slightly YoY (-1.97%), annualised revenue for TTM stands at a robust ₹4,590 crore. Net profit at ₹366 crore, with a resilient 15% operating profit margin, confirms competitive operating efficiency in a sector transitioning to higher value-add.
- Valuation: The P/E ratio of 35.1, while at a premium, is moderated by a PEG ratio of just 1.3—indicating the valuation is justified by underlying growth prospects, especially with the strategic pivot towards higher-margin, product-based revenue.
- Structural Advantages: As India’s leading supplier of Wi-Fi access points and optical fiber cables, and an emergent player in defence technology, HFCL occupies a privileged market niche. Its diversified portfolio (telecom, defence, railways, data centers), ongoing R&D investments, and strong order book (amplified by recent multi-crore wins) provide high visibility and growth predictability.
- Strategic Expansion: The recent inauguration of the Hosur defence manufacturing facility and emphasis on export growth underpin a scalable, future-proofed business model aligned with India’s import substitution and self-reliance imperatives.
What particularly merits attention is HFCL’s successful strategic transition from low-margin, project-based revenues to a technology, product, and export-focused mix. This trajectory is set to drive both margin expansion and capital efficiency going forward.
Volume and Liquidity
- Sustained Trading Volumes: With an average daily turnover of more than 14 million shares, HFCL enjoys strong market participation and investor engagement. This volume not only reflects broad market confidence but also facilitates dynamic re-rating opportunities should further positive catalysts emerge.
- Favourable Float Structure: The public shareholding (45.36%) and rising DII participation (13.26%, up from 10.96% in Q4 FY24) suggest deepening institutional confidence balanced by broad retail ownership. This structure enhances both stability and room for institutional accumulation without causing excessive valuation distortions.
Catalysts and Positive Outlook
- New Order Acceleration: Sustained order wins—both domestically and in overseas markets—signal robust demand and cash flow visibility, strengthening the company’s forward pipeline.
- Government Policy Tailwinds: Ongoing 5G/6G rollout, greater spectrum allocation, and Make-in-India procurement preferences directly favour HFCL’s indigenous offerings.
- Product Innovation and Defence Expansion: The doubling down on R&D, continuous product launches in high-margin networking segments, and deepening foray into the defence sector (now with a dedicated facility) position HFCL for outsized growth against both domestic and international peers.
- ESG and Digital Inclusion: Participation in the BharatNet initiative, and alignment with India’s digital inclusion policies, places HFCL at the heart of government-driven, large-scale digital infrastructure upgrades.
- Upcoming Corporate Events: The Q4 FY25 results (due May 22, 2025) and possible dividend announcement may provide further momentum, especially if operational improvements and working capital stabilization materialize.
Given these multiple positive drivers, the company is uniquely placed to benefit from both sector-specific and thematic secular trends over the next several years.
Investment Strategies
- Short-Term Positioning: The recent price rebound from oversold levels, combined with the immediate catalyst of Q4 results and dividend declaration, makes a tactical entry near current support levels (₹88.23-₹89.80) an appealing proposition for medium-term swing or event-driven traders.
- Medium-Term Strategy: As execution of new telecom and defence orders progresses and further government clarity around spectrum allocation emerges, HFCL’s earnings visibility should strengthen, potentially justifying a retest of resistance levels at ₹92-₹96 initially, and the 200-day EMA (~₹99.74) over the following quarters.
- Long-Term Perspective: For investors with a longer investment horizon, HFCL’s exposure to transformative themes (national digital infrastructure, defence production, high-speed connectivity), scalable order book, and ongoing product mix enhancement suggest potential for sustained multiple re-rating and secular alpha generation. Accumulating on corrective moves or ahead of key quarterly announcements may optimize long-term entry.
An ideal positioning may involve initial allocation at current technical lows, with add-on exposure should the company surpass resistance levels or deliver a positive Q4 surprise.
Is it the Right Time to Buy HFCL?
In summary, HFCL’s strengths—sectoral leadership, high visibility order book, strategic transition into high-margin segments, and increasing alignment with powerful national policy themes—position it at the vanguard of India’s digital infrastructure revolution. Technical signals corroborate the ongoing accumulation phase, while solid liquidity and rising institutional interest add conviction. Near-term catalysts, especially the imminent Q4 results and BharatNet/5G project executions, offer layered opportunities for appreciation.
With a favourable macro environment, transformative new order flows, and a proven ability to innovate and adapt, HFCL seems to represent an excellent opportunity for investors seeking exposure to India’s fast-growing technology and digital infrastructure space. While careful monitoring of working capital trends and upcoming quarterly results is warranted, the stock’s current setup may justify renewed interest and prudent accumulation—potentially marking the onset of a new bullish phase in FY26.
For those prepared to capitalize on India’s digital leap, HFCL’s unique positioning and vibrant momentum create a compelling opportunity that merits close attention in any forward-looking, tech-oriented investment portfolio.
How to buy HFCL stock in IN?
Buying HFCL stock online is a straightforward and secure process when you use a regulated broker in India. Today, retail investors can easily purchase HFCL shares directly (“spot” or “cash” buying) or trade price movements through contracts for difference (CFDs), each method offering unique benefits and risks. Whether you’re interested in owning shares for the long-term or seeking to profit from shorter-term price movements, there are trusted online platforms suited to your needs. To help you make an informed choice, we present a detailed comparison of leading brokers further down this page.
Cash buying
A cash purchase of HFCL stock means buying shares outright through your Demat account. You become a shareholder and can benefit from potential dividends and long-term price appreciation. In India, brokers typically charge a flat commission per order—commonly in the range of ₹20 to ₹50—plus government taxes and statutory charges.
Example
Suppose the HFCL share price is ₹89.80, and you invest $1,000 (approximately ₹83,000 at an exchange rate of ₹83/USD). After accounting for a brokerage fee of about ₹415 (i.e., $5), you have roughly ₹82,585 available. You can buy approximately 919 shares of HFCL (₹82,585 ÷ ₹89.80 ≈ 919 shares).
✔️ Gain scenario:
If the share price rises by 10%, your shares are now worth ₹98,844.
Result: That’s a +₹8,259 or +$100 gross gain, reflecting a 10% return on your initial investment (excluding other minor charges and taxes).
Trading via CFD
CFD trading allows you to speculate on the price movements of HFCL shares without actually owning them. With CFDs, you can take both long (buy) or short (sell) positions, and apply leverage—amplifying both gains and losses. Instead of a fixed commission, there’s usually a “spread” (small markup between buy/sell price) and a daily overnight financing fee if you hold the position beyond one day.
Example
Imagine you open a CFD trade on HFCL with a $1,000 stake (about ₹83,000) at 5x leverage. This provides market exposure of $5,000 (₹415,000).
✔️ Gain scenario:
If HFCL’s price rises by 8%, your total position gains 8% × 5 = 40%.
Result: You earn a gross profit of $400 (₹33,200) on an initial $1,000 bet—before considering spread and overnight fees.
Final advice
Before investing, it’s important to compare brokers’ fees, trading platforms, and the range of services offered. Costs and features can vary meaningfully between providers. Ultimately, your choice between spot buying and CFDs should be guided by your financial objectives, risk appetite, and investment horizon. For a detailed comparison of the best online brokers for HFCL stock, refer to the broker comparison table further down this page. Remember, the right method empowers you to invest in line with your personal goals.
Check out the best brokers in India!Compare brokersOur 7 tips for buying HFCL stock
| 📊 Step | 📝 Specific tip for HFCL |
|---|---|
| Analyze the market | Study HFCL’s recent turnaround, current momentum (+25% from recent lows), and its strong order book in the context of India’s expanding telecom and defence sectors. |
| Choose the right trading platform | Opt for a SEBI-registered broker that offers NSE access, low fees, and intuitive tools for tracking Indian mid-cap stocks like HFCL. |
| Define your investment budget | Decide on an amount you’re comfortable investing, considering HFCL's historical volatility and ensure you diversify across sectors, not just telecom. |
| Choose a strategy (short or long term) | Consider a long-term approach to benefit from HFCL’s product-focused growth, government initiatives in 5G/6G, and potential for margin improvements. |
| Monitor news and financial results | Actively follow HFCL’s quarterly results, large order wins, board announcements, and policy changes in India’s telecom sector for timely investment decisions. |
| Use risk management tools | Set stop-loss orders around support levels (like ₹86.66 or ₹84.45) and consider trailing stops to manage downside while capturing upside in volatile conditions. |
| Sell at the right time | Reassess your position at key resistance levels (₹92.01, ₹94.22) or after significant news events (e.g., order execution, Q4 results), locking in profits as the stock approaches overbought zones. |
The latest news about HFCL
HFCL shares have surged by over 9% this week, buoyed by recent order wins and policy tailwinds. Over the past seven days, HFCL Limited has demonstrated notable positive momentum with its share price climbing more than 9%, a movement strongly supported by multiple significant purchase orders and favorable sector policies. This recovery (+25% from recent lows) comes after a prolonged period of correction, signaling renewed investor confidence ahead of the company’s Q4 FY25 results announcement scheduled for May 22, 2025.
HFCL secured new orders worth ₹76.21 crore—including an export order—driving optimism about revenue visibility. In May 2025, HFCL announced the acquisition of fresh purchase orders aggregating to ₹76.21 crore, encompassing a $6.91 million (₹59.19 crore) overseas telecom order and a ₹17.02 crore domestic order from ITI Limited. These wins illustrate the progress of the company’s strategic pivot towards a greater mix of product-based revenues and expanding export footprint, which enhances revenue predictability and underpins expectations of improved operating margins for the next fiscal period.
A major ₹157 crore BharatNet Phase III order in West Bengal strengthens HFCL’s leadership in India’s OFC market. The securing of a ₹157 crore order for optical fiber cable supply under BharatNet Phase III in West Bengal further cements HFCL’s position as the country’s largest supplier of such products. This significant contract, coming on the heels of a recent mega-order from BSNL for BharatNet Phase III in Punjab, reinforces both order book strength and long-term growth prospects tied to national broadband expansion initiatives, which are critical for domestic market relevance and institutional investor interest.
Regulatory advancements, including 6G policy notification and prospect of license-free 6GHz spectrum, offer sector-wide uplift. HFCL shares received additional impetus (a 3% rise on May 19) from the Indian government’s formal notification of 6G services and ongoing policy discussions around making the 6GHz band license-free for telecom equipment makers. As a leading indigenous technology manufacturer, HFCL is strategically poised to benefit from these regulatory shifts, which are expected to accelerate network infrastructure upgrades and stimulate demand for advanced telecom products throughout India.
Technical indicators signal moderate bullishness as the stock trades above major short-term averages and nears resistance levels. The technical landscape for HFCL also presents constructive signals, with the current price trading above the 20-day and 50-day exponential moving averages and the 14-day RSI at 62.21, denoting moderately bullish momentum. The Money Flow Index, at 77.18, reflects robust buying but hints at potential overbought conditions near key resistance zones (₹92.01–₹95.79), highlighting strong market interest ahead of earnings, while reinforcing the need for vigilance as the stock approaches critical technical thresholds.
FAQ
FAQ
What is the latest dividend for HFCL stock?
The latest declared dividend for HFCL stock is ₹0.20 per share, offering a modest yield of 0.23%. This was paid in FY2024. While the dividend payout is currently low compared to industry standards, the company’s policy generally focuses on reinvesting profits to support growth initiatives. Historically, HFCL has maintained a lower dividend distribution, prioritizing expansion in new technologies and export markets.
What is the forecast for HFCL stock in 2025, 2026, and 2027?
Based on the current share price of ₹89.80, the projected prices are ₹116.74 at the end of 2025, ₹134.70 at the end of 2026, and ₹179.60 by the end of 2027. HFCL stands to benefit from strong sector momentum, recent government policies favoring telecom infrastructure, and several significant order wins across both domestic and export markets.
Should I sell my HFCL shares?
Holding onto your HFCL shares could be a prudent strategy, given the company’s robust order book, strategic shift towards high-margin products, and multiple growth drivers such as the defence and telecom sectors. While some risks exist, the company’s ability to secure key contracts and align with national digital initiatives enhances its long-term outlook. Considering these fundamentals, maintaining your position may be appropriate for a medium- to long-term horizon.
How are dividends and capital gains from HFCL stock taxed in India?
Dividends received from HFCL are taxable in the hands of investors as per their individual income tax slab rates. There is no separate dividend distribution tax, but a 10% TDS applies if total dividends exceed ₹5,000 in a financial year. Capital gains taxation depends on the holding period—gains held over one year qualify as long-term and are taxed at 10% above a certain threshold, while short-term gains are taxed at 15%. HFCL stock is fully eligible under standard Indian equity tax regulations.
What is the latest dividend for HFCL stock?
The latest declared dividend for HFCL stock is ₹0.20 per share, offering a modest yield of 0.23%. This was paid in FY2024. While the dividend payout is currently low compared to industry standards, the company’s policy generally focuses on reinvesting profits to support growth initiatives. Historically, HFCL has maintained a lower dividend distribution, prioritizing expansion in new technologies and export markets.
What is the forecast for HFCL stock in 2025, 2026, and 2027?
Based on the current share price of ₹89.80, the projected prices are ₹116.74 at the end of 2025, ₹134.70 at the end of 2026, and ₹179.60 by the end of 2027. HFCL stands to benefit from strong sector momentum, recent government policies favoring telecom infrastructure, and several significant order wins across both domestic and export markets.
Should I sell my HFCL shares?
Holding onto your HFCL shares could be a prudent strategy, given the company’s robust order book, strategic shift towards high-margin products, and multiple growth drivers such as the defence and telecom sectors. While some risks exist, the company’s ability to secure key contracts and align with national digital initiatives enhances its long-term outlook. Considering these fundamentals, maintaining your position may be appropriate for a medium- to long-term horizon.
How are dividends and capital gains from HFCL stock taxed in India?
Dividends received from HFCL are taxable in the hands of investors as per their individual income tax slab rates. There is no separate dividend distribution tax, but a 10% TDS applies if total dividends exceed ₹5,000 in a financial year. Capital gains taxation depends on the holding period—gains held over one year qualify as long-term and are taxed at 10% above a certain threshold, while short-term gains are taxed at 15%. HFCL stock is fully eligible under standard Indian equity tax regulations.
