430 per cent returns: This multibagger telecom stock announces robust expansion plans for optic fiber business!
A leading technology enterprise in India has announced the expansion of its optical fiber manufacturing capacity from 10 million fiber km/per annum to 33.90 million fiber km/per annum.
HFCL is a leading technology company that specialises in creating digital networks for telecom companies, businesses and governments. They offer sustainable high-tech solutions and the latest technology products. With strong R&D expertise, global system integration services and decades of experience in fiber optics, the company delivers innovative digital network solutions, including premium quality optical fiber, telecom products like 5G RAN and transport, Wi-Fi systems, radios, switches, routers and software-defined radios.
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On June 1, HFCL announced the expansion of its optical fiber manufacturing capacity from 10 million fiber km/per annum to 33.90 million fiber km/per annum. This expansion aims to meet the strong market demand for optical fiber cable and enhance operational synergy. The company has allocated an estimated capex of approximately Rs 470 crore for the expansion, which will be financed through debt and internal accruals. The phased expansion is expected to be completed by December 2024, improving the company's supply chain capabilities and overall margins.
The company has given stellar returns of 434 per cent in the last 3 years and a whopping 116 per cent returns in the last 5 years.
On Thursday, the share price of HFCL has surged by 0.31 per cent and made an intraday high of Rs 65.70.
Investors should keep a close eye on this multibagger stock.