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Last Updated: April 2, 2026, 3:02 am
Author: Getaka|Social: XLinkedIn

HFCL Ltd: Intrinsic Value & Share Price Analysis

Fair Value

₹204.60Undervalued by 182.21%vs CMP ₹72.50

P/E (214.0) × ROE (4.4%) × BV (₹27.00) × DY (0.14%)

₹51.31Overvalued by 29.23%vs CMP ₹72.50
MoS: -41.3% (Negative)Confidence: 54/100 (Moderate)Models: 1 Under, 1 Fair, 6 Over
ModelCategoryValueWeightSignal
PE-ROEEarnings₹139.1225%Under (+91.9%)
Graham NumberEarnings₹14.1618%Over (-80.5%)
Earnings PowerEarnings₹5.8615%Over (-91.9%)
Net Asset ValueAssets₹27.008%Over (-62.8%)
EV/EBITDAEnterprise₹18.6910%Over (-74.2%)
Earnings YieldEarnings₹3.308%Over (-95.4%)
ROCE CapitalReturns₹72.1410%Fair (-0.5%)
Revenue MultipleRevenue₹26.576%Over (-63.4%)
Consensus (8 models)₹51.31100%Overvalued
Key Drivers: EPS CAGR -32.0% drags value — could be higher if earnings stabilize. | P/E of 214 makes PE-ROE unreliable — asset/earnings models are better benchmarks.

PE-ROE · Graham · EPV · DCF · NAV · EV/EBITDA · DDM · Earnings Yield · ROCE Capital · Revenue Multiple | CoE: 12% · Terminal: 4% · EPS CAGR: -32.0%

*Investments are subject to market risks

Investment Snapshot

42
HFCL Ltd scores 42/100 (Weak)
Based on 5 dimensions: health, institutional flow, earnings quality, momentum, and peer comparison
Stock Health53/100 · Moderate
ROCE 7.6% WeakROE 4.4% WeakD/E 0.44 ModerateInterest Coverage 0.0x RiskyProfitable 5/5 years Consistent
Smart Money35/100 · Weak
FII holding up 0.51% (6mo) Slight increaseDII holding down 4.19% MF sellingPromoter decreased by 1.73% Caution
Earnings Quality40/100 · Moderate
OPM stable around 12% SteadyWorking capital: 179 days Capital intensive
Quarterly Momentum35/100 · Weak
Revenue (4Q): -14% YoY DecliningProfit (4Q): -83% YoY DecliningOPM: 19.0% (up 4.0% YoY) Margin expansion
Industry Rank35/100 · Weak
P/E 214.0 vs industry 365.2 Cheaper than peersROCE 7.6% vs industry 16.3% Below peersROE 4.4% vs industry 15.7% Below peers3Y sales CAGR: -5% Shrinking

Weights: Health 30% · Earnings Quality 25% · Momentum 20% · Industry Rank 15% · Smart Money 10%. Scores are computed from reported financials and recalculated daily. Not investment advice.

Share Price and Basic Stock Data

Last Updated: April 2, 2026, 3:02 am

Market Cap 11,092 Cr.
Current Price 72.5
Intrinsic Value₹51.31
High / Low 94.0/59.8
Stock P/E214
Book Value 27.0
Dividend Yield0.14 %
ROCE7.55 %
ROE4.42 %
Face Value 1.00
PEG Ratio-6.69

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for HFCL Ltd

Competitors

Stock Name ⇩Market Cap ⇩Current Price ⇩High / Low ⇩Stock P/E ⇩Book Value ⇩Dividend Yield ⇩ROCE ⇩ROE ⇩Face Value ⇩
HFCL Ltd 11,092 Cr. 72.5 94.0/59.8214 27.00.14 %7.55 %4.42 % 1.00
Avantel Ltd 3,568 Cr. 134 215/90.3156 12.70.15 %37.0 %28.6 % 2.00
Optiemus Infracom Ltd 2,736 Cr. 308 713/28841.5 81.00.00 %14.4 %11.6 % 10.0
GTL Infrastructure Ltd 1,319 Cr. 1.03 2.17/0.96 4.990.00 %%% 10.0
NELCO Ltd 1,266 Cr. 555 1,162/5002,435 56.30.18 %14.4 %7.63 % 10.0
Industry Average15,704.10 Cr262.86365.1551.050.25%16.26%15.66%8.17

All Competitor Stocks of HFCL Ltd

Quarterly Result

MetricDec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Sales 1,0861,4339951,1111,0321,3261,1581,0941,0128018711,0431,211
Expenses 9171,2798499799161,130984935860838843853983
Operating Profit 169154146133117196175158152-3728190228
OPM % 16%11%15%12%11%15%15%14%15%-5%3%18%19%
Other Income 25141318471410152114151317
Interest 37383635374042454751566163
Depreciation 20212121192024252630323644
Profit before tax 13710910394108149119102100-105-45106138
Tax % 26%28%26%25%24%27%7%28%28%-21%-34%32%26%
Net Profit 102797670821091117373-83-2972102
EPS in Rs 0.700.520.490.490.580.760.770.510.51-0.56-0.220.470.64

Last Updated: February 5, 2026, 5:05 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: February 24, 2026, 9:16 am

MetricMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025TTM
Sales 2,0192,5532,8722,1313,2274,7383,8394,4234,7274,7434,4654,0653,926
Expenses 1,8642,2722,6001,9442,9444,3203,3463,8734,0774,1253,8843,6163,516
Operating Profit 156281273187283418493550650619582449410
OPM % 8%11%10%9%9%9%13%12%14%13%13%11%10%
Other Income 385110-29212440223137471025858
Interest 444462626492115175166152147185230
Depreciation 2034262223274269788382106142
Profit before tax 47631215612422033935833744243145421795
Tax % 1%0%0%0%22%32%34%27%26%26%26%20%
Net Profit 47532415612417223223724632631833817362
EPS in Rs 3.832.611.260.991.351.731.771.862.272.182.291.230.33
Dividend Payout % 0%0%0%0%4%6%0%8%8%9%9%8%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-20242024-2025
YoY Net Profit Growth (%)-31.79%-51.85%-20.51%38.71%34.88%2.16%3.80%32.52%-2.45%6.29%-48.82%
Change in YoY Net Profit Growth (%)0.00%-20.06%31.34%59.22%-3.83%-32.73%1.64%28.72%-34.97%8.74%-55.11%

HFCL Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2014-2015 to 2024-2025.

Growth

Compounded Sales Growth
10 Years:5%
5 Years:1%
3 Years:-5%
TTM:-18%
Compounded Profit Growth
10 Years:-7%
5 Years:-5%
3 Years:-18%
TTM:-91%
Stock Price CAGR
10 Years:18%
5 Years:34%
3 Years:-3%
1 Year:-56%
Return on Equity
10 Years:12%
5 Years:9%
3 Years:8%
Last Year:4%

Last Updated: September 5, 2025, 6:05 am

Balance Sheet

Last Updated: December 10, 2025, 2:47 am

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Sep 2025
Equity Capital 124124124124124127128128137138144144144
Reserves 4307537168401,0551,3141,5401,7882,6612,9703,8123,9353,987
Borrowings 4013985445394695907349427839369911,5221,580
Other Liabilities 7175727917739411,2621,4272,3581,5901,4291,5401,9452,248
Total Liabilities 1,6721,8472,1752,2752,5883,2943,8295,2165,1715,4736,4877,5467,959
Fixed Assets 2301991751881962385045085285486528521,499
CWIP 141210863436108268469602112
Investments 3132725750556058415570194158178
Other Assets 1,1281,3731,9432,0352,3272,9113,2334,6314,4804,5865,1725,9356,170
Total Assets 1,6721,8472,1752,2752,5883,2943,8295,2165,1715,4736,4877,5467,959

Reserves and Borrowings Chart

Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Cash from Operating Activity + 86129013620734172145205235-45396
Cash from Investing Activity + 133-4537-25-30-150-167-165-458-44-449-518
Cash from Financing Activity + -243-74-55-114-11667-725248-145454170
Net Cash Flow -2410-18-361-49-15-546-4047
Free Cash Flow 285111-51110166-14354123-105-454-12
CFO/OP 78%54%12%103%102%15%53%30%41%54%13%89%

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Free Cash Flow-245.00-117.00-271.00-352.00-186.00-172.00-241.00-392.00-133.00-317.00-409.00448.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Debtor Days 5152141202134113153215146145181170
Inventory Days 3752591921405641966598113135145
Days Payable 679320307260148134227262173131141174
Cash Conversion Cycle -252-926814220221872127175141
Working Capital Days 28751121348462917085124163179
ROCE %33%36%24%13%18%24%21%20%19%15%13%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Promoters 39.24%39.24%37.84%37.84%37.69%37.63%36.24%35.90%34.37%31.58%30.02%28.29%
FIIs 6.77%7.53%8.35%8.18%7.66%7.02%6.68%6.70%6.97%7.75%7.48%7.48%
DIIs 2.78%2.95%4.64%4.55%5.68%7.39%8.69%10.96%13.26%14.04%13.57%9.07%
Public 51.12%50.19%49.09%49.37%48.91%47.91%48.33%46.40%45.36%46.61%48.89%55.13%
Others 0.10%0.09%0.08%0.08%0.06%0.06%0.05%0.04%0.04%0.04%0.04%0.03%
No. of Shareholders 5,90,6925,85,6475,89,4826,51,7867,29,5367,70,7917,73,2768,20,6398,40,2198,58,6388,69,4428,42,209

Shareholding Pattern Chart

No. of Shareholders

HFCL Ltd: Intrinsic Value & Share Price Analysis - Shareholder trend analysis

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Small Cap Fund 89,972,615 2.25 617.380,061,1372026-01-26 07:53:0312.38%
Quant Value Fund 3,529,000 1.55 24.215,331,7242025-12-08 08:42:52-33.81%
Quant Multi Cap Fund 3,463,172 0.32 23.76N/AN/AN/A

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 25Mar 24Mar 23Mar 22Mar 21
FaceValue 1.001.001.001.001.00
Basic EPS (Rs.) 1.232.332.182.381.86
Diluted EPS (Rs.) 1.232.332.182.381.86
Cash EPS (Rs.) 1.932.902.912.942.45
Book Value[Excl.RevalReserv]/Share (Rs.) 28.2927.7722.8320.5014.98
Book Value[Incl.RevalReserv]/Share (Rs.) 28.2927.7722.8320.5014.98
Revenue From Operations / Share (Rs.) 28.1831.0134.4634.3834.44
PBDIT / Share (Rs.) 3.514.744.845.044.56
PBIT / Share (Rs.) 2.784.174.234.474.03
PBT / Share (Rs.) 1.503.153.133.212.62
Net Profit / Share (Rs.) 1.202.342.312.371.92
NP After MI And SOA / Share (Rs.) 1.232.292.192.281.86
PBDIT Margin (%) 12.4615.2714.0314.6513.24
PBIT Margin (%) 9.8713.4412.2813.0011.69
PBT Margin (%) 5.3110.149.089.347.61
Net Profit Margin (%) 4.257.536.696.895.56
NP After MI And SOA Margin (%) 4.367.386.346.625.40
Return on Networth / Equity (%) 4.348.339.6911.1812.47
Return on Capital Employeed (%) 8.6113.9517.5020.5323.19
Return On Assets (%) 2.355.085.496.054.58
Long Term Debt / Equity (X) 0.090.040.030.040.14
Total Debt / Equity (X) 0.320.240.240.260.44
Asset Turnover Ratio (%) 0.570.740.890.850.93
Current Ratio (X) 1.862.081.911.751.39
Quick Ratio (X) 1.551.721.551.491.24
Inventory Turnover Ratio (X) 4.861.041.471.841.51
Dividend Payout Ratio (NP) (%) 16.268.668.246.170.00
Dividend Payout Ratio (CP) (%) 10.196.946.454.940.00
Earning Retention Ratio (%) 83.7491.3491.7693.830.00
Cash Earning Retention Ratio (%) 89.8193.0693.5595.060.00
Interest Coverage Ratio (X) 2.744.634.384.163.33
Interest Coverage Ratio (Post Tax) (X) 1.933.293.093.002.42
Enterprise Value (Cr.) 12285.3813919.728859.7411041.973794.40
EV / Net Operating Revenue (X) 3.023.121.872.340.85
EV / EBITDA (X) 24.2420.4113.3115.936.48
MarketCap / Net Operating Revenue (X) 2.802.961.772.290.73
Retention Ratios (%) 83.7391.3391.7593.820.00
Price / BV (X) 2.793.352.703.871.69
Price / Net Operating Revenue (X) 2.802.961.772.290.73
EarningsYield 0.010.020.030.020.07

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

About the Company - Qualitative Analysis

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. 3795.22 Cr. and Equity Capital is Rs. 144.21 Cr. for the Year ended 31/03/2025.
INDUSTRYADDRESSCONTACT
Telecom Equipment8, Electronics Complex, Solan Himachal Pradesh 173213Contact not found
Management
NamePosition Held
Mr. Mahendra NahataManaging Director
Dr. Ranjeet Mal KastiaNon Executive Director
Mr. Arvind KharabandaNon Executive Director
Mr. Ajai KumarIndependent Director
Mr. Bharat Pal SinghIndependent Director
Mrs. Bela BanerjeeIndependent Director

FAQ

What is the intrinsic value of HFCL Ltd and is it undervalued?

As of 18 April 2026, HFCL Ltd's intrinsic value is ₹51.31, which is 29.23% lower than the current market price of ₹72.50, suggesting the stock is overvalued. This is calculated using the PE ratio method factoring in ROE (4.42 %), book value (₹27.0), dividend yield (0.14 %), and 5-year EPS CAGR.

What is the current share price and 52-week range of HFCL Ltd?

HFCL Ltd is trading at ₹72.50 as of 18 April 2026, with a FY2026-2027 high of ₹94.0 and low of ₹59.8. The stock is currently in the middle of its 52-week range. Market cap stands at ₹11,092 Cr..

How does HFCL Ltd's P/E ratio compare to its industry?

HFCL Ltd has a P/E ratio of 214, which is below the industry average of 365.15. This is broadly in line with or below the industry average.

Is HFCL Ltd financially healthy?

Key indicators for HFCL Ltd: ROCE of 7.55 % is on the lower side compared to the industry average of 16.26%; ROE of 4.42 % is below ideal levels (industry average: 15.66%). Dividend yield is 0.14 %.

Is HFCL Ltd profitable and how is the profit trend?

HFCL Ltd reported a net profit of ₹173 Cr in Mar 2025 on revenue of ₹4,065 Cr. Compared to ₹326 Cr in Mar 2022, the net profit shows a declining trend.

Does HFCL Ltd pay dividends?

HFCL Ltd has a dividend yield of 0.14 % at the current price of ₹72.50. The company pays dividends, though the yield is modest.

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
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