HFCL share price fell over 3.7% on NSE in Tuesday’s trading session despite the market indices recorded sharp gains. The telecom gear stock opened at ₹230.50 on NSE today, as compared to previous close of ₹233.69 on Friday last week.
HFCL shares touched an intraday low of ₹225, falling over 3.71% on 15 September. The stock has remained under pressure in the near-term as it has fallen over 9.44% in a week.
The stock witnessed a sharp fall as investors rushed to book profits after the stock closed in green on Friday. According to data available on NSE, around 12.77 lakh shares changed hands in the intraday session on Tuesday.
Meanwhile, Indian equity markets staged a strong rebound on Tuesday, ending a five-session losing run, as the benchmark Sensex surged more than 400 points in early trade and the Nifty reclaimed the 23,500 level. The rally was led by a sharp uptrend in information technology stocks.
Both benchmark indices opened on a positive note with a gap-up. The Nifty started at 23,576.15, compared with its previous close of 23,398.10, while the Sensex opened at 75,369.63 against Monday’s close of 74,781.76.
HFCL recent business updates
In an exchange filing on Monday, September 14, HFCL announced that its board has approved an additional capital expenditure of ₹820 crore to expand its optical fibre (OF), optical fibre cable (OFC) and preform manufacturing capacities. With this investment, the company’s total planned capital expenditure for the capacity expansion projects will increase to around ₹1,800 crore.
The additional investment is expected to increase HFCL’s annual optical fibre capacity by 4.60 million fibre kilometres (Mn fkm), optical fibre cable capacity by 5.64 Mn fkm and preform capacity by 300 metric tonnes (MT). Once the ongoing and proposed expansion projects are completed, the company’s total manufacturing capacity is expected to reach 43.10 Mn fkm per year for optical fibre, 62 Mn fkm for optical fibre cable and 600 MT for preforms.
HFCL said the expansion plans are backed by its optical fibre cable and connectivity solutions order book of around ₹19,000 crore, in addition to a pipeline of potential business opportunities and strong long-term demand for optical communication infrastructure. Of the ₹820 crore additional investment, ₹670 crore will be allocated towards preform manufacturing capacity, while the remaining ₹150 crore will be used to expand optical fibre and optical fibre cable capacities.
The optical fibre and optical fibre cable expansion projects are expected to be completed by July 2028, while the new preform manufacturing facility is likely to be commissioned by October 2028. The preform facility will be set up through HFCL’s wholly owned subsidiary, HFCL Technologies Private Ltd.
The company said the proposed capex will be financed through a combination of internal accruals, proceeds from the preferential issue of warrants already allotted to the promoter and promoter group entity, borrowings from banks and financial institutions, and other suitable financing options.
“By expanding our Optical Fiber and Optical Fiber Cable capacities and establishing a significantly larger Preform manufacturing facility, we intend to strengthen our ability to meet growing customer requirements, improve supply chain resilience and enhance operational efficiencies. This investment reflects our confidence in the long-term growth potential of the optical communications industry and reinforces our commitment to building globally competitive manufacturing capabilities,” said Mahendra Nahata, Managing Director at HFCL.
HFCL share price performance
HFCL stock has delivered a mixed performance in the near term but remains a strong long-term wealth creator.
The stock has declined 9.44% over the past one week, indicating recent profit-booking after its sharp rally. However, on a one-month basis, the stock is still up 1.79%, suggesting that the broader uptrend has remained intact despite the recent correction.
Looking at the broader level, HFCL shares has generated substantial returns for investors. The stock has given multibagger returns of 229.51% on year-to-date (YTD), while its one-year return stands at 207.43%. Over three years, the stock has gained 211.52%, while the five-year return is 184.76%.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
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