HFCL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.9
| Stock Code | HFCL | Market Cap | 10,083 Cr. | Current Price | 65.8 ₹ | High / Low | 105 ₹ |
| Stock P/E | 404 | Book Value | 27.7 ₹ | Dividend Yield | 0.15 % | ROCE | 7.90 % |
| ROE | 5.00 % | Face Value | 1.00 ₹ | DMA 50 | 67.0 ₹ | DMA 200 | 76.7 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | -4.50 % | PAT Qtr | 61.4 Cr. | PAT Prev Qtr | -42.3 Cr. |
| RSI | 50.8 | MACD | -0.49 | Volume | 1,33,13,154 | Avg Vol 1Wk | 2,33,95,143 |
| Low price | 59.8 ₹ | High price | 105 ₹ | PEG Ratio | -34.5 | Debt to equity | 0.34 |
| 52w Index | 13.3 % | Qtr Profit Var | -18.0 % | EPS | 0.17 ₹ | Industry PE | 14.6 |
📊 Chart & Trend Analysis: HFCL is trading at ₹65.8, below both its 50 DMA (₹67.0) and 200 DMA (₹76.7), indicating short-term weakness. RSI at 50.8 suggests neutral momentum, neither overbought nor oversold. MACD at -0.49 reflects mild bearish sentiment. Current volume (1.33 Cr.) is significantly lower than the weekly average (2.33 Cr.), showing weak participation. Bollinger Bands suggest sideways consolidation with price near mid-range.
📈 Momentum Signals: Short-term momentum is weak, with MACD slightly negative and volume declining. RSI neutrality indicates consolidation rather than strong trend continuation.
🎯 Entry Zone: ₹62 – ₹64 (near immediate support)
🚪 Exit Zone: ₹70 – ₹74 (near resistance at 50 DMA)
🔎 Trend Status: Consolidating with bearish bias. Sustained trade below ₹62 could trigger reversal towards ₹60, while recovery above ₹76 may signal bullish trend resumption.
Positive
- Quarterly PAT recovery to ₹61.4 Cr. from a loss of ₹42.3 Cr. shows operational turnaround.
- Book value of ₹27.7 provides some margin of safety.
- Debt-to-equity ratio of 0.34 indicates manageable leverage.
Limitation
- Extremely high P/E ratio (404) compared to industry average (14.6) suggests severe overvaluation.
- Low ROCE (7.90%) and ROE (5.00%) reflect weak efficiency.
- PEG ratio of -34.5 highlights poor growth prospects.
- Weak trading volume reduces conviction in recovery moves.
Company Negative News
- Decline in DII holding (-4.50%) signals reduced domestic institutional confidence.
- Quarterly profit variation of -18% shows earnings pressure.
Company Positive News
- Return to profitability in the latest quarter after previous losses.
- Stable FII holding indicates neutral foreign investor sentiment.
Industry
- Telecom and optical fiber industry remains competitive with moderate valuations (Industry P/E: 14.6).
- Sector growth driven by digital infrastructure demand, but margins remain under pressure.
Conclusion
⚖️ HFCL is consolidating with a bearish bias. Entry near ₹62–₹64 offers cautious accumulation, while exits near ₹70–₹74 provide short-term profit booking. Despite operational turnaround, extremely high valuation, weak efficiency metrics, and declining institutional support warrant caution for aggressive positions.
Would you like me to extend this into a peer benchmarking overlay (Sterlite Tech, Tejas Networks, ITI Ltd.) so you can compare HFCL’s relative strength within the telecom/optical fiber basket?