HFCL Ltd., incorporated in the year 1987, is a Small Cap company (having a market cap of Rs 9279.63 Crore) operating in Telecommunications sector.
HFCL Ltd. key Products/Revenue Segments include Turnkey Contracts, Telecom Products, Export Incentives and Scrap for the year ending 31-Mar-2020.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 1212.16 Crore, down -13.29 % from last quarter Total Income of Rs 1397.87 Crore and up 72.26 % from last year same quarter Total Income of Rs 703.70 Crore. Company reported net profit after tax of Rs 90.93 Crore in latest quarter.
Investment Rationale
HFCL targets 45% revenue from product sales during FY22, which will increase to 60% in next 2-3 years and correspondingly reduce revenue proportion from turnkey projects. Nearly Rs10bn of ambitious capex programme will bootstrap this transition over FY22-24E (including ~Rs3bn capex under PLI scheme for telecom equipment). Initiate coverage on the stock with a target price of Rs92/share.
Promoter/FII Holdings
Promoters held 42.1 per cent stake in the company as of June 30, 2021, while FIIs held 2.3 per cent, DIIs 0.6 and public and others 55 per cent.
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