Shares of HFCL Ltd were trading 1.94 per cent higher in Friday's trade at Rs 157.80. At this price, the stock, which is hovering near its record high level, has gained 86.50 per cent on a year-to-date (YTD) basis.
Shares of telecom equipment makers, including HFCL, are currently in focus as a few reports suggested that the Centre is exploring options to produce mobile devices locally. This assumes significance, especially after pager blasts in Lebanon (Middle East).
The telecom industry has urged the government to consider extending the production-linked incentive (PLI) scheme by five years once its current five-year tenure ends in 2026.
"PLI extension is awaited for the telecom sector. We are trying to become a manufacturing hub with respect to the production of handsets and telecom equipment. Investors can continue to hold on to HFCL," said Kranthi Bathini, director of equity strategy at WealthMills Securities.
Technically, the stock looked strong on daily charts. Support could be seen at Rs 154, followed by Rs 140,
"HFCL could be a good pick from the telecom equipment space. One should keep a stop loss placed at Rs 140 for expected target prices of Rs 170-185 levels," Ratnesh Goyal, Head of Technical Analysis at Arihant Capital, told Business Today TV.
"The stock looked strong on daily charts and can hit Rs 180 level in the near term. Keep stop loss placed at Rs 154," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
"HFCL stock price is bullish on daily charts with strong support at Rs 146.5. A daily close above resistance of Rs 168 could lead to an upside target of Rs 189 in the near term," said Sebi-registered research analyst AR Ramachandran.
As of June 2024, promoters held a 37.63 per cent stake in the telecom equipment maker.