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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of HFCL Ltd

About the Company - HFCL Ltd

HFCL Ltd. is a Public Limited Listed company incorporated on 11/05/1987 and has its registered office in the State of Himachal Pradesh, India. Company’s Corporate Identification Number(CIN) is L64200HP1987PLC007466 and registration number is 007466. Currently Company is involved in the business activities of Construction/erection and maintenance of power, telecommunication and transmission lines. Company’s Total Operating Revenue is Rs. 4286.44 Cr. and Equity Capital is Rs. 137.49 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Telecom Equipment8, Electronics Complex, Solan Himachal Pradesh 173213investor@hfcl.com
http://www.hfcl.com
Management
NamePosition Held
Mr. Mahendra NahataManaging Director
Dr. Ranjeet Mal KastiaNon Executive Director
Mr. Arvind KharabandaNon Executive Director
Mr. Ajai KumarIndependent Director
Mr. Surendra Singh SirohiIndependent Director
Mr. Bharat Pal SinghIndependent Director
Dr.(Ms.) Tamali SenguptaIndependent Director

HFCL Ltd. Share Price Update

Share PriceValue
Today₹93.50
Previous Day₹94.25

Basic Stock Data of HFCL Ltd

Market Cap 16,252 Cr.
Current Price 114
High / Low117/55.8
Stock P/E55.8
Book Value 24.9
Dividend Yield0.17 %
ROCE15.2 %
ROE10.2 %
Face Value 1.00

Data Source: screener.in

HFCL Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,2771,3911,2071,1221,2151,1831,0511,1731,0861,4339951,1111,032
Expenses1,1131,2101,0219531,0451,0599359959171,279849979916
Operating Profit164181186169171124116179169154146133117
OPM %13%13%15%15%14%10%11%15%16%11%15%12%11%
Other Income12654-23013-42514131847
Interest44514940393838393738363537
Depreciation18181818202320212021212119
Profit before tax114118124115109937111413710910394108
Tax %25%27%27%25%26%27%25%26%26%28%26%25%24%
Net Profit858691868168538410279767082
EPS in Rs0.640.660.680.630.570.470.370.590.700.520.490.490.58

HFCL Ltd Quarterly Chart

HFCL Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2616072,0192,5532,8722,1313,2274,7383,8394,4234,7274,7434,626
Expenses2555461,8642,2722,6001,9442,9444,3203,3463,8734,0774,1254,004
Operating Profit660156281273187283418493550650619621
OPM %2%10%8%11%10%9%9%9%13%12%14%13%13%
Other Income3497385110-292124402231374751
Interest8886444462626492115175166152146
Depreciation15172034262223274269788384
Profit before tax-6355476312156124220339358337442431443
Tax %-0%0%1%0%0%0%22%32%34%27%26%26%
Net Profit-6756475324156124172232237246326318326
EPS in Rs-0.540.453.832.611.260.991.351.731.771.862.272.182.20
Dividend Payout %0%0%0%0%0%0%4%6%0%8%8%9%

HFCL Ltd Profit & Loss Yearly Chart

HFCL Ltd Growth

Compounded Sales Growth
10 Years:23%
5 Years:8%
3 Years:7%
TTM:2%
Compounded Profit Growth
10 Years:19%
5 Years:12%
3 Years:10%
TTM:-1%
Stock Price CAGR
10 Years:29%
5 Years:37%
3 Years:58%
1 Year:56%
Return on Equity
10 Years:18%
5 Years:13%
3 Years:12%
Last Year:10%

HFCL Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital124124124124124124124127128128137138143
Reserves-82-254307537168401,0371,3061,5401,7882,6612,9703,417
Preference Capital8080808000000000
Borrowings412379321317544539469590734942783936896
Other Liabilities1,3498127976537917739591,2711,4272,3581,5901,4291,464
Total Liabilities1,8031,2901,6721,8472,1752,2752,5883,2943,8295,2165,1715,4735,920
Fixed Assets165183230199175188196238504508528548882
CWIP202214121086343610826866
Investments915310313272575055605841557063
Other Assets7037751,1281,3731,9432,0352,3272,9113,2334,6314,4804,5864,908
Total Assets1,8031,2901,6721,8472,1752,2752,5883,2943,8295,2165,1715,4735,920

HFCL Ltd Reserves and Borrowings Chart

HFCL Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -75186129013620734172145205236
Cash from Investing Activity 68-6133-4537-25-30-150-167-165-458-45
Cash from Financing Activity -80-62-243-74-55-114-11667-725248-145
Net Cash Flow-20-17-2410-18-361-49-15-547

HFCL Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days5152155152141202134113153215146145
Inventory Days2472673752591921405641966598113
Days Payable582637679320307260148134227262173131
Cash Conversion Cycle180-155-252-926814220221872127
Working Capital Days912499313116510794136126135187
ROCE %3%25%33%36%24%13%18%24%21%20%19%15%

HFCL Ltd Financial Efficiency Indicators Chart

HFCL Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters42.05%42.05%41.89%39.23%39.23%39.20%39.20%39.24%39.24%39.24%37.84%37.84%
FIIs2.18%2.20%3.96%7.19%6.66%6.81%6.72%6.52%6.77%7.53%8.35%8.18%
DIIs0.08%0.68%0.63%1.44%1.87%2.03%2.58%2.64%2.78%2.95%4.64%4.55%
Public55.69%55.07%53.30%51.97%52.11%51.78%51.36%51.49%51.12%50.19%49.09%49.37%
Others0.00%0.00%0.22%0.17%0.12%0.18%0.13%0.12%0.10%0.09%0.08%0.08%
No. of Shareholders2,51,1323,74,1974,71,5785,43,5886,28,7526,36,0736,16,5626,14,9485,90,6925,85,6475,89,4826,51,786

HFCL Ltd Shareholding Pattern Chart

No. of HFCL Ltd Shareholders

HFCL Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Quant Small Cap Fund259457801.78169.17
Quant Active Fund218640512.35142.55
Quant Value Fund53317244.5334.76
Quant Business Cycle Fund30434783.0919.84
Quant Teck Fund22776097.914.85
Nippon India Nifty Smallcap 250 Index Fund5354030.493.49
Motilal Oswal Nifty Smallcap 250 Index Fund3361500.482.19
Axis Nifty Smallcap 50 Index Fund2486511.51.62
SBI Nifty Smallcap 250 Index Fund2467030.481.61
Aditya Birla Sun Life Nifty Smallcap 50 Index Fund2340061.521.53

HFCL Ltd ROCE Trend

HFCL Ltd EPS Trend

HFCL Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)2.182.381.861.771.77
Diluted EPS (Rs.)2.182.381.861.761.75
Cash EPS (Rs.)2.912.942.452.182.03
Book Value[Excl.RevalReserv]/Share (Rs.)22.8320.5014.9812.9911.23
Book Value[Incl.RevalReserv]/Share (Rs.)22.8320.5014.9812.9911.23
Revenue From Operations / Share (Rs.)34.4634.3834.4429.8937.18
PBDIT / Share (Rs.)4.845.044.564.023.60
PBIT / Share (Rs.)4.234.474.033.693.38
PBT / Share (Rs.)3.133.212.622.802.66
Net Profit / Share (Rs.)2.312.371.921.861.82
NP After MI And SOA / Share (Rs.)2.192.281.861.771.73
PBDIT Margin (%)14.0314.6513.2413.449.67
PBIT Margin (%)12.2813.0011.6912.359.10
PBT Margin (%)9.089.347.619.367.16
Net Profit Margin (%)6.696.895.566.204.90
NP After MI And SOA Margin (%)6.346.625.405.914.64
Return on Networth / Equity (%)9.6911.1812.4713.6115.25
Return on Capital Employeed (%)17.5020.5323.1924.7227.07
Return On Assets (%)5.496.054.585.936.65
Long Term Debt / Equity (X)0.030.040.140.130.09
Total Debt / Equity (X)0.240.260.440.410.38
Asset Turnover Ratio (%)0.890.850.931.021.52
Current Ratio (X)1.911.751.391.601.56
Quick Ratio (X)1.551.491.241.421.41
Inventory Turnover Ratio (X)1.471.841.511.463.39
Dividend Payout Ratio (NP) (%)8.246.170.006.810.00
Dividend Payout Ratio (CP) (%)6.454.940.005.750.00
Earning Retention Ratio (%)91.7693.830.0093.190.00
Cash Earning Retention Ratio (%)93.5595.060.0094.250.00
Interest Coverage Ratio (X)4.384.163.334.504.99
Interest Coverage Ratio (Post Tax) (X)3.093.002.423.083.53
Enterprise Value (Cr.)8859.7411041.973794.401657.133289.42
EV / Net Operating Revenue (X)1.872.340.850.430.69
EV / EBITDA (X)13.3115.936.483.217.18
MarketCap / Net Operating Revenue (X)1.772.290.730.300.61
Retention Ratios (%)91.7593.820.0093.180.00
Price / BV (X)2.703.871.690.692.02
Price / Net Operating Revenue (X)1.772.290.730.300.61
EarningsYield0.030.020.070.190.07

HFCL Ltd Profitability Ratios (%)

HFCL Ltd Liquidity Ratios

HFCL Ltd Liquidity Ratios (%)

HFCL Ltd Interest Coverage Ratios (%)

HFCL Ltd Valuation Ratios

Fair Value of HFCL Ltd Stock

Fair Value: ₹141.96

The stock is undervalued by 24.53% compared to the current price ₹114

*Investments are subject to market risks

Strength and Weakness of HFCL Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 20.92%, which is a positive sign.
  2. The company has higher reserves (1,334.69 cr) compared to borrowings (24.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (69.38 cr) and profit (279.23 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 3.96 and average Dividend Yield of 11.68%.
  2. The stock has a high average Working Capital Days of 103.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 14.33, which may not be favorable.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in HFCL Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE