Rs 6,584.71 crore order book: This multibagger telecom infrastructure company wins arbitration award worth Rs 72.34 crore from Ministry of Communication!
The stock gave multibagger returns of 340 per cent in 3 years and over 900 per cent returns in 1 decade.
A contract between Wireless Advisor, Wireless Planning and Coordination, a wing of the Ministry of Communication, Government of India (WPC) and HFCL Limited, was terminated in 2011 due to a disagreement over the design of the equipment. WPC imposed liquidated damages on HFCL and withheld other payments. HFCL won an arbitration case against WPC in 2023 and is entitled to recover Rs 72.34 crore from WPC along with interest.
The award includes Rs 18.19 crore in principal amount, plus interest at 10 per cent per annum from March 19, 2014, and Rs.18.85 crore in foreign exchange losses, plus interest at 10 per cent per annum from March 19, 2014. HFCL is also entitled to future interest at 10 per cent per annum on the amount awarded if WPC does not pay within 60 days of the award date.
Talking about the financials, the company has a market cap of over Rs 10,000 crore. According to the Quarterly Results, the company reported net sales of Rs 995 crore in Q1FY24 compared to net sales of Rs 1,051 crore in Q1FY23. The net profit increased by 43.40 per cent to Rs 76 crore in Q1FY24 compared to Rs 53 crore in Q1FY23.
Order book update: As of June 30, 2023, the company’s order book stood at Rs 6,584.71 crore. Out of the total order book, public telecommunication & EPC's current order book is Rs 3,591.67 crore, defence communication’s current order book is Rs 1,846.57 crore and railway communication’s current order book is Rs 656.92 crore.
On Friday, shares of HFCL Ltd gained 1.66 per cent to Rs 75.35 per share with an intraday high of Rs 76.20 and an intraday low of Rs 73.80. The stock gave multibagger returns of 340 per cent in 3 years and over 900 per cent returns in 1 decade. Investors should keep an eye on this Mid-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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