The analyst noted that the stock remains stuck near its 52-week low, with stretched valuations, weak earnings, and ₹80 acting as a major resistance level.
HFCL jumped briefly to an intraday high on Thursday after reports that its subsidiary secured a ₹101.82 crore order from the Indian Army.
At the time of writing, shares of HFCL were trading at ₹71.34, down 0.7 on the day.
Founded in 1987, HFCL is a technology enterprise engaged in telecom infrastructure, optical fiber cables, and high-end communication solutions.
Weak Technical Picture
SEBI-registered analyst Akhilesh Jat said the positive order news provided only short-term sentiment support.
The stock is hovering near its 52-week low of ₹70.35 and remains down more than 57% from its 52-week high of ₹171. It continues to trade below all key moving averages, with ₹80 likely to act as a strong resistance level.
Jat added that HFCL’s price-to-earnings ratio of 306x far exceeds the sector average of 19.59x, while returns on equity and capital employed remain low at 4.25% and 8.61% respectively. This, he said, suggests institutional players may be using a “sell on rise” strategy.
Outlook Remains Bearish
Financial performance has deteriorated, with a profit of ₹82 crore in the September 2024 quarter turning into a loss of ₹82.2 crore by March 2025.
Both revenue and net profit have been in decline since 2023, making the recent bounce look more like a “dead cat bounce.” Jat said the technical structure points to a redistribution phase with lower peaks and weak buying pressure.
He warned that, even though the stock may see occasional spikes in response to news, the underlying trend remains weak, so investors should exercise caution before entering new positions.
What Is The Retail Mood?
On Stocktwits, retail sentiment for HFCL was ‘bullish’ amid ‘normal’ message volume.
HFCL’s stock has declined 37.4% so far in 2025.
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