If you invested or looking to invest in HFCL stock you might be wondering for the HFCL share price target. Well, your search is going to end here because on this page, we have given the target price of HFCL stock for 2023 to 2050.
Regarding 2023, HFCL is expected to reach Rs. 90 as it has been on an uptrend for the last two months. However, more detailed information on this topic is discussed below. So, continue reading for a step-by-step analysis that has been thoroughly conducted by the team at sharekingz.com.
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About HFCL
HFCL (Himachal Futuristic Communications Limited) is a leading global technology company that connects billions of people, devices, and systems. The company has extensive experience in installing cell sites and fiber optic cable networks.
HFCL is also a top manufacturer of optical fibers & cables and telecom equipment in India, providing telecom infrastructure services. To streamline its operations, HFCL has divided its multiple business models into subsidiary companies such as HTL Limited, Polixel Security Systems Pvt. Ltd, DragonWave HFCL India Pvt. Ltd, Reddef Pvt Ltd, Moneta Finance Pvt Ltd, and HFCL Advance Pvt Ltd.
HFCL boasts an impressive client portfolio, including major companies such as Reliance, Nokia, HPCL, Saudi Arabia Railways, BPCL, Vodafone Idea, Tata, Railtel, Gail, L&T, BSNL, Bharti Airtel, and many others.
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HFCL Share Fundamental Analysis
Data As of 4th September 2023
Current Market Price | Rs. 75.3 |
Market Cap | Rs. 10,375 Crore |
P/E Ratio | 32.6 |
EPS | Rs. 2.30 |
52 Week High | Rs. 88.8 |
52 Week Low | Rs. 55.8 |
Book Value | Rs. 22.6 |
Dividend Yield | 0.27% |
ROCE | 15.7% |
ROE | 10.2% |
Promoters Holding | 37.84% |
FIIs Holding | 9.05% |
DIIs Holding | 4.45% |
Public Holding | 48.60% |
Others Holding | 0.08% |
In 2020, HFCL recorded sales of Rs. 3839 Crore, an operating profit of Rs. 493 Crore, OPM of 13%, profit before tax of Rs. 358 Crore and a net profit of Rs. 237 Crores. However, as of March 2023, these figures have increased to sales of Rs. 4743 Crore, an operating profit of Rs. 619 Crore, OPM of 13%, profit before tax of Rs. 431 Crore, and a net profit of Rs. 318 Crore. This indicates that both the company’s top line (revenue) and bottom line (profit) are on an upward trend.
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HFCL Stock Positive Points
- The company has exhibited a significant profit growth rate of 15.39% over the last three years.
- This company is a strong contender for receiving PLI scheme benefits from the government, given the government’s increased emphasis on the growth of the fiber optic sector in India.
HFCL Stock Negative Points
- The company’s revenue growth in the past three years has been negative at -0.61%.
- The company has a high number of debtor days, which is currently at 184.45.
- The percentage of promoter pledging is high at 44.68%.
- HFCL has borrowings of Rs. 768 Crore.
HFCL Share Price Target 2023 to 2050
As one of India’s largest manufacturers of Optical Fiber Cables (OFC), HFCL is poised for significant business growth as the future of Indian Telecom relies heavily on fiber networks.
HFCL has set ambitious expansion plans, which include investing in research and development and expanding its manufacturing capabilities. The company has its sights set on becoming a global leader in the telecommunications industry. Taking these factors and fundamentals into consideration, we have established the following target prices.
![](https://sharekingz.com/wp-content/uploads/2023/09/hfcl-share-price-target-1024x1024.webp)
Year | HFCL Stock Target Price |
2023 | Rs. 90 |
2024 | Rs. 105 |
2025 | Rs. 137 |
2026 | Rs. 171 |
2027 | Rs. 205 |
2028 | Rs. 246 |
2029 | Rs. 280 |
2030 | Rs. 314 |
2031 | Rs. 402 |
2032 | Rs. 483 |
2033 | Rs. 579 |
2034 | Rs. 683 |
2035 | Rs. 813 |
2036 | Rs. 894 |
2037 | Rs. 1,020 |
2038 | Rs. 1,223 |
2039 | Rs. 1,468 |
2040 | Rs. 1,762 |
2041 | Rs. 2,114 |
2042 | Rs. 2,537 |
2043 | Rs. 3,044 |
2044 | Rs. 3,653 |
2045 | Rs. 4,238 |
2046 | Rs. 5,085 |
2047 | Rs. 6,103 |
2048 | Rs. 7,323 |
2049 | Rs. 8,788 |
2050 | Rs. 10,545 |
Please note that the target price mentioned above does not include any potential adjustments to the stock price, such as bonuses or share splits. Please keep this in mind.
Factors Affecting HFCL’s Stock Price
Many investors have a positive outlook towards HFCL’s business and stock. One of the key reasons for this optimism is HFCL’s strong relationship with Reliance Jio Infocomm Limited (RJIL). HFCL has a significant partnership with RJIL in network planning, design, and implementation, especially in the northern region of India.
In FY 2018, RJIL contributed to 63% of HFCL’s total revenue, which decreased to 47% in FY 2019 and further to 34% in FY 2020. While RJIL remains a major contributor to HFCL’s revenue, HFCL is also diversifying its revenue streams by expanding its client base.
Additionally, Reliance Jio has made strategic investments in HFCL and holds approximately a 5% stake in the company, which is a positive sign for HFCL’s future prospects. Some other factors will be affecting the HFCL’s share price in future, such as:
Industry Trends
The telecommunications industry is experiencing rapid changes, and companies must adapt to remain competitive. HFCL has managed to remain relevant by investing in research and development and establishing partnerships with global leaders in the industry.
Company Performance
When making investment decisions, investors usually evaluate a company’s financial performance, which includes factors like revenue growth, profit margins, and debt levels. HFCL has shown consistent growth in its revenue over time and has set ambitious targets for future expansion.
Government Policies
Changes in government policies and regulations can significantly impact the telecommunications industry, potentially affecting the profitability and growth prospects of companies within the industry.
Competition
HFCL operates in a highly competitive telecommunications market in India, where there are no barriers to competition. To maintain its competitive edge, the company needs to constantly innovate and invest in research and development.
FAQs Related to HFCL Share Price Target
Upon delving deeper into our research, we discovered that many investors have numerous queries concerning the HFCL stock price. As such, our expert panel has provided answers to some of these commonly asked questions.
Is HFCL good for long term?
Based on our analysis, HFCL appears to possess all the characteristics of a stock that would be suitable for long-term investment. Nonetheless, it is recommended that you conduct your own research on a regular basis to safeguard your investments.
Is HFCL debt free?
No, HFCL does not have zero debt. Its balance sheet shows borrowings of Rs. 768 Crore.
Can HFCL be a multibagger?
The future success of HFCL as a multibagger stock is contingent upon the performance of the company’s business. However, there are no guarantees for the future performance of any stock in the world.
Final Statement:
In summary, HFCL appears to be a promising stock with the potential for long-term growth. Its strong financial performance, partnerships, and investments in research and development suggest a bright future for the company. However, it’s important to remember that no investment is completely risk-free. Investors should conduct their own research and monitor the company’s performance closely to safeguard their investments.
Note: The analysis provided is solely for educational purposes and is not intended as a recommendation to buy or sell. Please note that we are not registered with SEBI as advisors.
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