HFCL shares surge over 5% on securing Rs 8,100 cr projects in partnership

HFCL share price surged 5.5 per cent at Rs 132.30 per share on the BSE in Wednesday’s intraday deals. This came after HFCL along with its consortium partners emerged as the lowest bidders with multiple bids exceeding more than Rs 8,100 Crores for BharatNet Phase III Project. 

 

“HFCL-Rail Vikas Nigam Limited (RVNL)-Aerial Telecom Solutions, a consortium has been declared as the Lowest Bidders by Bharat Sanchar Nigam Limited (BSNL), for bids valued at Rs 6,925 crores to provide middle-mile network in Uttar Pradesh (East) and Uttar Pradesh (West) under the BharatNet Phase III programme of the Government of India,” the company said in a statement on Monday. 

 

Additionally, the consortium will be awarded 10 years of O&M order at an annual rate of 5.5 per cent of capex for 1st five years and 6.5 per cent for the subsequent five years which will be worth Rs 4,155 crores, after commissioning of the first ring of network.

 

HFCL has also emerged as the top bidder for Punjab circle for a bid value of Rs 1244 Crores in the BharatNet phase III tenders, on standalone basis. Furthermore, HFCL is expected to secure 10 years of O&M order valued at around Rs 746 Crores with annual rates of 5.5 per cent per annum of capex for 1st five years and 6.5 per cent per annum of capex for next five years, after commissioning of the first ring of network.

 

“HFCL is well placed with a diverse product line that includes routers, optical fiber cables, fiber connectivity solutions, transport solutions, power management solutions etc, to address the needs of the BharatNet Phase III program. As a trusted BSNL partner, we look forward to continued collaborations and contributing significantly to the success of BharatNet Phase-III program,” said Mahendra Nahata, Managing Director of HFCL. 

 

HFCL is a technology enterprise with operations in manufacturing of high-end telecom equipment, optical fiber and optical fiber cables and offering communication network solutions for telcos, defence and railway sector.

 

HFCL share price history

The company’s stock has outperformed the market year to date as it has risen 56.4 per cent, while gaining 100.7 per cent in the last one year. In comparison BSE Sensex has risen 9.8 per cent year to date and 22.3 per cent in a year. 

 

The company has a total market capitalisation of Rs 19,108.20 crore. HFCL shares are trading at a price to earnings multiple of 47.86 times and at an earning per share of Rs 2.65.