HFCL - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.2
| Stock Code | HFCL | Market Cap | 19,290 Cr. | Current Price | 126 ₹ | High / Low | 128 ₹ |
| Stock P/E | 76.3 | Book Value | 30.9 ₹ | Dividend Yield | 0.08 % | ROCE | 9.26 % |
| ROE | 5.82 % | Face Value | 1.00 ₹ | DMA 50 | 84.6 ₹ | DMA 200 | 78.2 ₹ |
| Chg in FII Hold | -0.40 % | Chg in DII Hold | -0.50 % | PAT Qtr | 178 Cr. | PAT Prev Qtr | 56.2 Cr. |
| RSI | 87.7 | MACD | 11.0 | Volume | 18,88,95,213 | Avg Vol 1Wk | 12,43,35,609 |
| Low price | 59.8 ₹ | High price | 128 ₹ | PEG Ratio | -332 | Debt to equity | 0.32 |
| 52w Index | 96.4 % | Qtr Profit Var | 345 % | EPS | 1.65 ₹ | Industry PE | 16.6 |
Analysis: HFCL has shown extraordinary short-term momentum with a sharp rise in quarterly PAT (345% growth) and strong trading volumes. The stock is currently at its 52-week high (128 ₹) with RSI at 87.7, indicating extreme overbought conditions. While MACD (11.0) is positive, the very high P/E (76.3 vs. industry 16.6) and negative PEG ratio (-332) suggest significant overvaluation. Fundamentals are weak with low ROE (5.82%) and ROCE (9.26%), and dividend yield is negligible (0.08%). FII and DII holdings both declined, signaling cautious institutional sentiment.
Entry Price: Optimal entry would be on a pullback near 110–115 ₹, avoiding buying at the peak.
Exit Strategy: If already holding, consider exiting around 125–128 ₹, as the stock is near resistance and overbought.
✅ Positive
- Quarterly PAT surged 345% (178 Cr. vs. 56.2 Cr.).
- Strong trading volume above weekly average.
- Stock trading well above 50 DMA (84.6 ₹) and 200 DMA (78.2 ₹).
⚠️ Limitation
- Extremely high P/E (76.3) compared to industry (16.6).
- Negative PEG ratio (-332) indicates poor valuation alignment.
- Low ROE (5.82%) and ROCE (9.26%).
📉 Company Negative News
- Decline in FII holdings (-0.40%) and DII holdings (-0.50%).
- Dividend yield is negligible (0.08%).
- RSI at 87.7 shows extreme overbought condition.
📈 Company Positive News
- Quarterly PAT growth of 345% indicates strong earnings momentum.
- Stock has delivered nearly 96% return in the past year.
🏭 Industry
- Industry PE at 16.6 vs. HFCL’s 76.3, showing heavy premium valuation.
- Telecom and optical fiber industry is growth-oriented but cyclical.
🔎 Conclusion
HFCL is a momentum-driven stock with strong recent earnings but weak fundamentals and extreme overvaluation. It is risky for swing trading at current levels. Best entry is on a correction near 110–115 ₹, with an exit around 125–128 ₹ if already holding. Traders should be cautious as the stock is overbought and institutional investors are reducing exposure.