Shares of optical fibre cable manufacturer HFCL rallied nearly 9% on Tuesday after the company secured an order from a telecom company in India. The midcap stock has risen nearly 22% in a week and 5% in the past one month. Despite recent gains, the stock trades 33% lower than its 52-week high of ₹101.35 touched on January 17, 2022. The share price of the New Delhi-headquartered company hit a 52-week low of ₹51.55 on June 20, 2022.
On Tuesday, HFCL share price opened higher at ₹64.2, up 2.88% against the previous closing levels of ₹62.4 on the BSE. During the session so far, the stock jumped 8.97% to hit an intraday high of ₹68 amid strong volume. Over 18.2 lakh shares worth ₹12.1 crore changed hands over the counter by 12:40 PM, as compared to two-week average volume of 6.92 lakh stocks. In contrast, the BSE benchmark Sensex was trading 333 points lower at 54,061 levels at the time of reporting.
The company in a post-market hour release on Monday said it received a purchase order amounting to ₹59.22 crore from one of the leading private telecom operators of the country for providing services to rollout their Fiber to the Home (FTTH) network and long-distance fiber network in various telecom circles. The New Delhi-headquartered company, however, didn’t reveal the name of the contractor.
“Purchase Orders issued by a leading telecom awarded in brief by operators of the country for their Fiber to the Home (FTTH) network and long distance fiber network in various telecom circles,” HFCL says in a BSE filing.
The order includes services for OFC rollout for FTTH network and long distance fiber network, which need to be delivered by July 2023.
This is the third major order secured by the company in the last one month. In June, the company received two purchase orders aggregating to ₹73.39 crore. The order includes one contract worth ₹51.09 crore from one of the leading private telecom operators of the country for supply of UBRs (Unlicensed Band Radio) along with accessories and another of ₹22.30 crore from one of the leading EPC players of India for supply of optical fibre cables.
As per the company, the UBRs have been indigenously designed, developed, and manufactured in India, which are sold not only in India but also in the global market. “This contract demonstrates the confidence of private telecom operators in the adoption of HFCL's indigenously manufactured products for expanding their existing network infrastructure,” the company had said on June 9, 2022.
Formed in 1987, HFCL Ltd (Erstwhile Himachal Futuristic Communications Limited) manufactures and sells telecom equipment in optical, wireless, and wireline technologies (like 3G and 4G Repeaters, Broadband, etc.) from its facilities located at Goa, Hyderabad, and Chennai. The company provides and implements projects for complete site infrastructure for mobile operators, satellite & radio communication, optical transport networks, and spectrum management solution and has worked for various private and government operators including major GSM vendors.
