Rs 7,685 crore order book: This multibagger telecom infrastructure company spearheads innovation in defence products for Indian and global markets

The stock is up by 64 per cent from its 52-week low of Rs 61.52 per share and gave multibagger returns of over 1,000 per cent in a decade.

HFCL Ltd, a leading technology enterprise specializing in the manufacturing of high-end telecom equipment, optical fiber, and optical fiber cables, as well as providing communication network solutions for telecommunications, defence and railway sectors, has strengthened its position in the defence sector with the development of cutting-edge defence electronic products. Aiming to be a significant contributor to the defence sector and fortify national security, HFCL has invested in its R&D capabilities over the past five years to develop various defence products.

HFCL has successfully created a comprehensive, IPR-owned state-of-the-art defence product portfolio which is not only of national importance but also has huge export demand. This includes electronic fuzes, Ti Cores for thermal sights, thermal weapon sights for light machine guns and assault rifles, ground surveillance radars for various ranges and applications, as well as high-capacity radio relays, among others. It is also in the process of developing drone detection radars.

HFCL has developed different types of Electronic Fuzes for 105-, 130-, and 155-mm calibre artillery guns. The Company has also successfully cleared the User Trial Readiness Review for the Armament Upgrade Project of the Indian Army for BMP Infantry Combat Vehicles, further demonstrating its capabilities in meeting the defence sector's requirements. HFCL’s subsidiary HTL Limited has already received orders from various Defence PSUs for the supply of wire harnesses for application in tanks, ships, aircraft and several other equipment.

India accounts for 3.7 per cent of global military spending amounting to 6.21 lakh crore, making it the third highest military spender in the world after the U.S. and China. With active initiatives by Indian and various global governments to modernize and upgrade defence networks and systems, there is a total addressable market of multi-billion dollars. Leveraging its strong R&D capabilities, HFCL aims to address the defence market nationally and internationally. The market size for HFCL’s current products is expected to be more than USD 10 billion. The company is also in the process of developing a state-of-the-art manufacturing facility in Hyderabad for defence products.

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HFCL Ltd (Himachal Futuristic Communications Limited) is a diverse telecom infrastructure enabler with active interest spanning telecom infrastructure development, system integration, and manufacture and supply of high-end telecom equipment, optical fiber and optic fiber cable (OFC). The company has a market cap of over Rs 14,000 crore and reported positive numbers in its Quarterly Results (Q4FY24) and annual results (FY24).

Order book update: As of March 31, 2023, the company’s order book stood at Rs 7,685 crore. Out of the total order book, Government orders are worth Rs 5,630 crore and private company orders are worth Rs 2,055 crore.

On Saturday, shares of HFCL Ltd surged 4.50 per cent to Rs 100.95 per share from its previous closing of Rs 96.60 with an intraday high of Rs 101.30 and an intraday low of Rs 97.20. The shares of the company saw a spurt in volume by more than 1.37 times on BSE. The stock’s 52-week high of Rs 117.75 per share and its 52-week low is Rs 61.52 per share. The stock is up by 64 per cent from its 52-week low of Rs 61.52 per share and gave multibagger returns of over 1,000 per cent in a decade. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.