HFCL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.9
| Stock Code | HFCL | Market Cap | 10,580 Cr. | Current Price | 68.9 ₹ | High / Low | 105 ₹ |
| Stock P/E | 3,918 | Book Value | 26.1 ₹ | Dividend Yield | 0.15 % | ROCE | 7.90 % |
| ROE | 5.00 % | Face Value | 1.00 ₹ | DMA 50 | 67.1 ₹ | DMA 200 | 76.5 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | -4.50 % | PAT Qtr | 56.2 Cr. | PAT Prev Qtr | 61.4 Cr. |
| RSI | 56.9 | MACD | 0.22 | Volume | 2,59,88,180 | Avg Vol 1Wk | 2,41,55,051 |
| Low price | 59.8 ₹ | High price | 105 ₹ | PEG Ratio | -335 | Debt to equity | 0.34 |
| 52w Index | 20.0 % | Qtr Profit Var | -28.4 % | EPS | 0.00 ₹ | Industry PE | 16.6 |
📊 HFCL shows weak fundamentals with extremely high P/E (3,918) and negative PEG ratio (-335), indicating poor valuation metrics. The RSI at 56.9 suggests neutral momentum, while MACD (0.22) shows only marginal bullishness. The optimal entry price would be around ₹66–₹67, near the 50 DMA support. If already holding, consider exiting around ₹74–₹76, close to the 200 DMA resistance zone.
✅ Positive
- Large trading volume compared to weekly average indicates strong market activity.
- Debt-to-equity ratio of 0.34 is moderate, showing manageable leverage.
- Stock price near support levels offers potential short-term swing opportunity.
⚠️ Limitation
- Extremely high P/E (3,918) compared to industry PE (16.6) suggests severe overvaluation.
- Dividend yield of 0.15% is negligible.
- ROCE (7.90%) and ROE (5.00%) are weak, reflecting poor efficiency and profitability.
- EPS reported as 0.00 ₹ indicates lack of earnings strength.
📉 Company Negative News
- DII holdings decreased significantly (-4.50%), showing reduced domestic institutional confidence.
- Quarterly PAT declined from ₹61.4 Cr. to ₹56.2 Cr., with profit variation of -28.4%.
📈 Company Positive News
- Stable FII holdings (0.00%) indicate no foreign investor exit pressure.
- Strong liquidity with high trading volumes supports short-term trading opportunities.
🏭 Industry
- Telecom and optical fiber industry has long-term growth potential due to rising data demand.
- Industry PE at 16.6 highlights HFCL’s extreme overvaluation compared to peers.
- Sector outlook remains positive with infrastructure expansion, but company-specific fundamentals are weak.
🔎 Conclusion
HFCL is currently not a strong candidate for swing trading due to poor fundamentals, extreme overvaluation, and declining profitability. Short-term opportunities may exist due to high trading volumes and support levels, but risk is elevated. Entry near ₹66–₹67 may be considered for speculative trades, with an exit target around ₹74–₹76. Caution is advised as fundamentals do not support sustained upside.