NSEI:HFCL

Stock Analysis Report

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Executive Summary

HFCL Limited manufactures and sells telecom products in India and internationally. More Details


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has HFCL's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HFCL is more volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: HFCL's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of Indian stocks.


Market Performance


7 Day Return

6.8%

HFCL

1.5%

IN Telecom

2.3%

IN Market


1 Year Return

5.2%

HFCL

-7.8%

IN Telecom

8.9%

IN Market

Return vs Industry: HFCL exceeded the Indian Telecom industry which returned -9.1% over the past year.

Return vs Market: HFCL underperformed the Indian Market which returned 7.4% over the past year.


Shareholder returns

HFCLIndustryMarket
7 Day6.8%1.5%2.3%
30 Day7.1%5.1%8.9%
90 Day6.5%-0.7%10.2%
1 Year5.2%5.2%-4.0%-7.8%11.0%8.9%
3 Year-31.2%-31.8%-1.5%-12.6%6.2%1.0%
5 Year-6.5%-7.2%12.5%-6.6%53.0%41.5%

Long-Term Price Volatility Vs. Market

How volatile is HFCL's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is HFCL undervalued compared to its fair value and its price relative to the market?

19.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate HFCL's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate HFCL's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: HFCL's PE Ratio (19.1x) is in line with the XA Telecom industry average.

PE vs Market: HFCL is poor value based on its PE Ratio (19.1x) compared to the Indian market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HFCL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HFCL is good value based on its PB Ratio (1.3x) compared to the XA Telecom industry average (1.9x).


Next Steps

Future Growth

How is HFCL forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.3%

Forecasted Telecom industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as HFCL has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has HFCL performed over the past 5 years?

-0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HFCL has high quality earnings.

Growing Profit Margin: HFCL's current net profit margins (3.8%) are lower than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: HFCL's earnings have declined by 0.7% per year over the past 5 years.

Accelerating Growth: HFCL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HFCL had negative earnings growth (-59.4%) over the past year, making it difficult to compare to the Telecom industry average (1%).


Return on Equity

High ROE: HFCL's Return on Equity (7.4%) is considered low.


Next Steps

Financial Health

How is HFCL's financial position?


Financial Position Analysis

Short Term Liabilities: HFCL's short term assets (₹33.3B) exceed its short term liabilities (₹22.3B).

Long Term Liabilities: HFCL's short term assets (₹33.3B) exceed its long term liabilities (₹2.4B).


Debt to Equity History and Analysis

Debt Level: HFCL's debt to equity ratio (45.8%) is considered high.

Reducing Debt: HFCL's debt to equity ratio has reduced from 48.5% to 45.8% over the past 5 years.

Debt Coverage: HFCL's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: HFCL's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Next Steps

Dividend

What is HFCL current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HFCL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HFCL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HFCL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HFCL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: HFCL is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HFCL's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average board tenure


CEO

Mahendra Nahata (61 yo)

15.08yrs

Tenure

₹68,000,000

Compensation

Mr. Mahendra Nahata has been the Managing Director of Himachal Futuristic Communications Ltd. since October 2005. Mr. Nahata was employed at Jumbo Techno Services Pvt. Ltd. He was one of the promoters of H...


CEO Compensation Analysis

Compensation vs Market: Mahendra's total compensation ($USD915.73K) is above average for companies of similar size in the Indian market ($USD374.90K).

Compensation vs Earnings: Mahendra's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Mahendra Nahata
MD & Wholetime Director15.08yrs₹68.00m0.56%
₹ 132.8m
Arvind Kharabanda
Non-Executive Director16.08yrs₹740.00kno data
Ranjeet Kastia
Non-Executive Director11.75yrs₹485.00kno data
Mahendra Shukla
Non-Executive Chairman2.17yrs₹540.00kno data
Surender Sirohi
Independent Director2.25yrs₹690.00kno data
Ranjeet Soni
Non-Executive Director3yrs₹220.00kno data
Tamali Gupta
Independent Women Director1.92yrs₹655.00kno data
Bharat Singh
Additional Non-Executive Independent Director0.83yrno datano data

2.6yrs

Average Tenure

66.5yo

Average Age

Experienced Board: HFCL's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

HFCL Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HFCL Limited
  • Ticker: HFCL
  • Exchange: NSEI
  • Founded: 1987
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: ₹23.633b
  • Shares outstanding: 1.28b
  • Website: https://www.hfcl.com

Location

  • HFCL Limited
  • 8, Commercial Complex
  • Masjid Moth
  • New Delhi
  • Delhi
  • 110048
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500183BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 1995
HFCLNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 1995

Biography

HFCL Limited manufactures and sells telecom products in India and internationally. It offers a range of optical fiber cables for telecommunication, NLD, access, and FTT-x networks, as well as addresses app...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 13:02
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.