HFCL shares rise after three days as firm wins Rs 283-cr order from Gujarat Metro

Shares of Himachal Futuristic Communications Limited (HFCL Ltd) ended higher today after the firm bagged a Rs 282.61 crore contract from Gujarat Metro Rail Corporation to deploy communication systems for Phase-1of Surat Metro Rail Project. The company has to deploy the project within 90 days from the date of contract. Shares of the telecom gear maker ended 3.75% higher at Rs 58.68 against the previous close of Rs 56.56 on BSE. They hit an intraday high of Rs 59.18, rising 4.63% on BSE. The HFCL stock has gained after 3 days of consecutive fall.

Earlier, HFCL stock opened flat at Rs 56.57 on BSE. HFCL shares have lost 17.58 per cent in one year and fallen 20.33 per cent since the beginning of this year. Market cap of HFCL stood at Rs 8,084 crore on BSE. Total 12.73 lakh shares of the firm changed hands amounting to a turnover of Rs 7.32 crore.

The stock hit a 52-week low of Rs 51.55 on June 20, 2022 and a 52 week high of Rs 88.80 on December 9, 2022. In terms of technicals, the relative strength index (RSI) of HFCL stock stands at 20.2, signaling it’s trading in the oversold zone. The stock has a beta of 1.2, indicating very high volatility in a year. HFCL shares are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

“..the company has bagged an order worth Rs 282.61 crore from Gujarat Metro Rail Corporation (GMRC) Limited, for design, manufacture, supply, installation, testing and commissioning of telecommunication systems for Surat Metro Rail Project Phase-I,” the company said in a regulatory filing. Under the contract, HFCL has to provide warranty support for 110 weeks for the system that it will deploy.

Recently, HFCL won a contract for the integration of communication networks in Kanpur-Agra metro rail project and is currently implementing telecom networks for seven greenfield dedicated freight corridor projects for Indian Railways. HFCL is also integrating communication networks for metros and mainline railways and implementing video management systems at around 600 railway stations. It is also part of a consortium of domestic players that have been tasked to conduct a 5G trial for Indian Railways between Palwal and Mathura sector.

HFCL Limited is primarily engaged in 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. It provides solutions for building wireless and optical telecommunication networks, such as optical transport networks (DWDM), rural global system for mobile communications (GSM) networks, broadband access networks, radio backhaul, fiber to the home and in-building solutions.

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