HFCL Limited manufactures and sells telecom products in India and internationally. More Details
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.
7 Day Return
1 Year Return
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.
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
3 days ago | Simply Wall StIs HFCL (NSE:HFCL) Likely To Turn Things Around?
3 weeks ago | Simply Wall StHave Insiders Been Buying HFCL Limited (NSE:HFCL) Shares?
1 month ago | Simply Wall StAre Institutions Heavily Invested In HFCL Limited's (NSE:HFCL) Shares?
Is HFCL undervalued compared to its fair value and its price relative to the market?
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).
How is HFCL forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
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.
- Examine HFCL's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- HFCL competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Telecom industry.
How has HFCL performed over the past 5 years?
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.
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).
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.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Mahendra Nahata (61 yo)
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.
|MD & Wholetime Director||15.08yrs||₹68.00m||0.56% |
|Non-Executive Director||16.08yrs||₹740.00k||no data|
|Non-Executive Director||11.75yrs||₹485.00k||no data|
|Non-Executive Chairman||2.17yrs||₹540.00k||no data|
|Independent Director||2.25yrs||₹690.00k||no data|
|Non-Executive Director||3yrs||₹220.00k||no data|
|Independent Women Director||1.92yrs||₹655.00k||no data|
|Additional Non-Executive Independent Director||0.83yr||no data||no data|
Experienced Board: HFCL's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
HFCL Limited's company bio, employee growth, exchange listings and data sources
- 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
- HFCL Limited
- 8, Commercial Complex
- Masjid Moth
- New Delhi
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|500183||BSE (Mumbai Stock Exchange)||Yes||Equity Shares||IN||INR||Feb 1995|
|HFCL||NSEI (National Stock Exchange of India)||Yes||Equity Shares||IN||INR||Feb 1995|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/11/24 13:02|
|End of Day Share Price||2020/11/24 00:00|
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.