Shares of HFCL Ltd gained nearly 4 per cent in Thursday’s trade amid heavy volumes. The stock rose 3.63 per cent to hit a day high of Rs 70.20 over its previous close of Rs 67.74. Around 10.20 lakh shares changed hands today on BSE, which was twice the two-week average volume of 5.10 shares. Turnover on the counter stood at Rs 7.04 crore, commanding a market capitalisation (m-cap) of Rs 9,521.69 crore. Today’s sharp movement in the share price came after the company entered into a collaboration with software giant Microsoft.
The company, in an exchange filing, said, “HFCL has collaborated with Microsoft to create converged private 5G solutions that harness new-age technologies of IoT, Cloud, Edge Computing, AI and Analytics to transform industry verticals that include manufacturing, retail & warehouse, mining, education, defence, railways, smart city, etc.”
Mahendra Nahata, Managing Director at HFCL, said, “We are very pleased with our collaboration with Microsoft in implementing Industry 4.0 solution in our own factory as a pilot program, using Microsoft Azure public MEC. The best practices and the lessons learned will act as a playbook to deploy Private 5G solutions for manufacturing and other industry verticals embarking on a similar digital transformation journey.”
HFCL said its private 5G solutions bring together key components – 5G connectivity, data collectors & sensors, AI, analytics, edge and cloud platform – to create horizontal and vertical solutions to digitally transform industries.
Samik Roy, Executive Director, Corporate, Medium, Small Business, Microsoft India, said, “Microsoft Azure provides seamless and rapid capabilities to roll out Industry 4.0 solutions at scale while solving critical business problems at the operator edge. HFCL can now leverage Azure compute, storage, networking, and AI capabilities for a comprehensive portfolio of private 5G use-cases across industry verticals.”
The HFCL stock was last seen trading higher than the 5-day and 20-day moving averages but lower than the 50-day, 100- and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 55.48. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 35.12.
The scrip has an average target price of Rs 86, Trendlyne data showed, suggesting a potential upside of 24.46 per cent. The scrip has a one-year beta of 1.23, indicating high volatility on the counter.
HFCL is an India-based company that is primarily engaged in the manufacturing of telecommunication equipment, optical fiber cables and intelligent power systems. The company is a manufacturer of optical fiber cables, optical transport, power electronics and broadband equipment for the telecommunication industry.
Meanwhile, Indian equity benchmarks fell sharply in today’s deals, dragged by automobile, consumer, technology and energy stocks.
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