HFCL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | HFCL | Market Cap | 11,123 Cr. | Current Price | 72.7 ₹ | High / Low | 94.0 ₹ |
| Stock P/E | 4,120 | Book Value | 26.1 ₹ | Dividend Yield | 0.14 % | ROCE | 7.90 % |
| ROE | 5.00 % | Face Value | 1.00 ₹ | DMA 50 | 69.6 ₹ | DMA 200 | 75.0 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | -4.50 % | PAT Qtr | 56.2 Cr. | PAT Prev Qtr | 61.4 Cr. |
| RSI | 56.7 | MACD | 0.88 | Volume | 2,66,34,766 | Avg Vol 1Wk | 3,88,23,346 |
| Low price | 59.8 ₹ | High price | 94.0 ₹ | PEG Ratio | -352 | Debt to equity | 0.34 |
| 52w Index | 37.7 % | Qtr Profit Var | -28.4 % | EPS | 0.00 ₹ | Industry PE | 16.3 |
📊 Chart & Trend Analysis: HFCL is trading at ₹72.7, slightly above its 50 DMA (₹69.6) but below its 200 DMA (₹75.0), showing mixed signals. RSI at 56.7 indicates neutral momentum, while MACD at 0.88 suggests mild bullish crossover. Bollinger Bands show price moving toward the mid-range, reflecting consolidation. Volume is below the weekly average, indicating reduced participation.
📈 Momentum Signals: Short-term momentum is stabilizing, with MACD turning positive. RSI is neutral, suggesting neither overbought nor oversold conditions. Consolidation is likely before a breakout attempt.
💹 Entry & Exit Zones:
- Optimal Entry: ₹70–₹73 (near 50 DMA support)
- Stop-Loss: ₹68 (below 50 DMA)
- Exit Zone: ₹75–₹78 (near 200 DMA resistance)
- Major Resistance: ₹94 (52-week high)
📉 Trend Status: The stock is consolidating with mild bullish bias, supported by MACD crossover but capped by 200 DMA resistance.
Positive
- Market cap of ₹11,123 Cr. provides scale in telecom and optical fiber sector.
- Debt-to-equity ratio of 0.34 indicates manageable leverage.
- Trading above 50 DMA shows short-term strength.
Limitation
- Extremely high P/E of 4,120 compared to industry average of 16.3, reflecting distorted valuation due to low EPS.
- Weak ROCE (7.90%) and ROE (5.00%) show limited efficiency.
- Quarterly profit declined from ₹61.4 Cr. to ₹56.2 Cr.
Company Negative News
- DII holdings decreased (-4.50%), showing reduced domestic institutional confidence.
- Quarterly profit variation of -28.4% highlights earnings pressure.
Company Positive News
- Stable FII holding (0.00%) indicates no foreign exit pressure.
- Strong 52-week performance (+37.7%) compared to broader index.
Industry
- Telecom and optical fiber industry benefits from 5G rollout and digital infrastructure demand.
- Industry PE at 16.3 highlights relatively cheaper peers compared to HFCL’s distorted valuation.
Conclusion
⚖️ HFCL shows consolidation with mild bullish bias, supported by MACD crossover but capped by 200 DMA resistance. Traders may consider entry near ₹70–₹73 with strict stop-loss at ₹68, targeting ₹75–₹78 in the short term. Long-term investors should be cautious due to weak profitability metrics and distorted valuations, waiting for sustained earnings improvement before accumulation.
Would you like me to extend this into a peer benchmarking overlay (Sterlite Tech, Tejas Networks, ITI Ltd) so you can compare sector rotation opportunities alongside HFCL?