The HFCL stock witnessed a 12.65% increase, reaching a peak of Rs 76.30 from its previous closing value of Rs 67.73. Despite this upward movement, the script has experienced a nearly 2% decline on a year-to-date (YTD) basis.
HFCL Ltd witnessed a significant surge in its shares during Friday’s trading session, accompanied by substantial trading volumes. The stock recorded a notable increase of 12.65%, reaching a daily high of Rs 76.30 compared to its previous close at Rs 67.73. Despite this rise, the script has experienced a slight decline of nearly 2% on a year-to-date (YTD) basis.
On the Bombay Stock Exchange (BSE), approximately 41.51 lakh shares were exchanged today, surpassing the two-week average volume of 6.63 lakh shares. The turnover on the counter amounted to Rs 30.43 crore, contributing to a market capitalization (m-cap) of Rs 10,634.36 crore. The sharp movement in the share price followed an announcement from the company regarding the introduction of a “new era in defense technology with cutting-edge radars.”
HFCL, in an official filing, disclosed that its 90% owned subsidiary, Raddef Pvt Ltd, a research and development enterprise, has designed a range of surveillance radars tailored to meet diverse operational needs. These radars employ Frequency Modulated Continuous Wave (FMCW) technology, offering advantages such as high accuracy, low power consumption, and resistance to interference. The company highlighted its strategic focus on radar technologies to address the critical information, surveillance, and reconnaissance (ISR) needs of defense and security forces.
Mahendra Nahata, Managing Director at HFCL, emphasized the company’s commitment to fostering Make-in-India technology, solidifying its position as a trusted partner in the defense communication domain.
HFCL noted that the global market for surveillance radars is expected to reach $12 billion per annum by 2030, presenting a significant opportunity for the company. With India accounting for 3.7% of global military spending, HFCL sees itself contributing and leading with innovation in the Indian defense tech space.
From a technical standpoint, the HFCL stock was trading higher than various simple moving averages (SMAs), including the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day SMAs. The 14-day relative strength index (RSI) stood at 68.42, indicating a relatively strong position. The company’s stock has a price-to-equity (P/E) ratio of 39.18, compared to a price-to-book (P/B) value of 2.83.
HFCL is primarily engaged in the manufacturing of telecommunication equipment, optical fiber cables, and intelligent power systems. The company is recognized for its production of optical fiber cables, optical transport, power electronics, and broadband equipment for the telecommunication industry. Additionally, HFCL is involved in the development of a state-of-the-art drone detection radar, positioned as a crucial component in modern drone detection systems.