This telecom cable manufacturer stock has zoomed over 100% in a month

HFCL (formerly Himachal Futuristic Communications Limited) shares hit an over 13-year high of Rs 49.90 after rallying 12 per cent on the BSE in intra-day trade on Friday on the back of heavy volumes. The stock was trading at its highest level since January 2008. In the past one month, it has zoomed 106 per cent, as compared to 5 per cent gain in the S&P BSE Sensex.

In the past eight trading days, the telecom cables manufacture's stock has surged 46 per cent after the company reported eight-fold jump in its consolidated profit after tax (PAT) at Rs 86.50 crore in March quarter (Q4FY21). It had posted a PAT of Rs 8.7 crore in Q4FY20. On sequential basis, the PAT grew 1.6 per cent from Rs 85.1 crore in Q3FY21.

The company’s revenue from operations during the quarter under review more-than-doubled at Rs 1,391 crore from Rs 663 crore in a year ago quarter. Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin improved 200 basis points (bps) to 13.5 per cent in Q4FY21 from 11.5 per cent in Q4FY20.

HFCL is a leading technology enterprise engaged in manufacturing of high end transmission and access equipment, optical fiber, optical fiber cables (OFC) and is specialized in setting up modern communication network for telecom service providers, railways, defense, smart city and surveillance projects.

HFCL is one of the largest telecom project service providers for Reliance Jio and is currently engaged in rolling out of 4G OFC Network services across Northern India. Apart from deploying networks in Punjab & Jharkhand, HFCL is also supplying fiber optic cables in Maharashtra, Telangana & Chhattisgarh under Bharat Net projects.

In a separate regulatory filing, HFCL on May 12, 2021 announced the launch of its Telecom Infra Project (TIP) OpenWiFi compliant Access Points. TIP is a global community of companies and organizations that are driving infrastructure solutions to advance global connectivity. The TIP OpenWiFi platform will ensure plug and play interoperability across multiple vendors resulting in a faster roll out of features.

HFCL has been working very closely with TIP to develop cost effective open source powered Access Points and wireless controllers to extend the reach and accelerate the growth of high-speed broadband services across the world.

HFCL is also collaborating with a few leading core solutions providers; to offer IO Outdoor and Indoor TIP OpenWiFi compliant Access Points for PM-WANI deployments. PM–WANI is an Indian Government’s public Wi-Fi project, aimed at deploying millions of Wi-Fi hotspots and provide affordable high-speed Internet to everyone in the Country. Relying on its indigenously developed secure Wi-Fi solutions, along with TIP OpenWiFi integration, HFCL aims to create a robust and interoperable Wi-Fi Network integrated with third party captive portal and AAA solutions for the use and benefit of users across the Country, it said.

In 2011, the company had reduced the face value and paid up value of equity shares of the Company from Rs 10 per share to Re 1 per share as per the composite scheme of arrangement and amalgamation between Sunvision Engineering Company Private Limited (SECPL), its Shareholders, Optionally Convertible Debenture (OCD) Holder and Himachal Futuristic Communications Limited (HFCL) and its Shareholders, sanctioned by the Hon’ble High Court of Himachal Pradesh at Shimla on January 5, 2011.

At 10:48 am, HFCL was up 10 per cent at Rs 48.90 on the BSE, as compared to 1.25 per cent rise in the S&P BSE Sensex. A combined 56.6 million equity shares have changed hands on the counter on the NSE and BSE, so far.